Binance announced a partnership with $1.6 trillion asset manager Franklin Templeton on Wednesday to develop a range of digital asset initiatives designed to merge the depth of traditional finance with the speed and flexibility of blockchain.

Binance Joins Hands with Franklin Templeton to Develop Tokenized Solutions

The collaboration combines Franklin Templeton’s experience in tokenization with Binance’s global reach and trading infrastructure, creating a foundation for new products that aim to improve efficiency, transparency, and accessibility in capital markets, according to a statement on Wednesday. The partnership comes as tokenization gains increasing demand among traditional finance markets.

Sandy Kaul, EVP and Head of Innovation at Franklin Templeton, described the significance of the development. “As these tools and technologies evolve from the fringes to the financial mainstream, partnerships like this one will be essential to accelerating adoption”, Kaul said in the statement.

Roger Bayston, EVP and Head of Digital Assets at Franklin Templeton, also explained that accessibility and reliability are at the center of their efforts.

“Investors are asking about digital assets to remain ahead of the curve, but they need to be accessible and dependable. By working with Binance, we can deliver breakthrough products that meet the requirements of global capital markets and co-create the portfolios of the future”.

For Binance, the collaboration builds on its ongoing effort to open traditional capital markets to crypto innovation. Catherine Chen, Head of VIP and Institutional at Binance, highlighted the exchange’s record of pioneering new investment tools.

“Binance has a record of innovating first-in-crypto solutions that unlock access and opportunities for investors. Our strategic collaboration with Franklin Templeton to develop new products and initiatives furthers our commitment to bridge crypto with traditional capital markets and open up greater possibilities”.

Although specific products have not yet been detailed, Binance hinted at developments rolling out later this year. Franklin Templeton has already been active in tokenization through its Benji Investments platform, which allows fractional ownership of money market funds on blockchain. The company was one of the first to embrace tokenization, launching the Franklin OnChain US Government Money Fund (FOBXX) in 2021, which marked the first US-registered mutual fund to record transactions and share ownership on a public blockchain.

Binance Integrates USDe Stablecoin

This partnership follows Binance’s recent integration of Ethena Labs’ USDe synthetic dollar across its platform. USDe now possesses a spot trading pair, yield-bearing collateral for futures and perpetual contracts, and is a featured asset on Binance Earn.

USDe’s integration on Binance demonstrates the company’s capacity for rapidly supporting growing assets on its platform. It also points to its ability to adapt to shifting investor demands.

BNB Surges to New All-time High

The announcement sparked immediate market momentum for Binance’s native token BNB, which surged to $904 on the day, marking a new all-time high price. Following the surge, BNB quickly retraced to $896, maintaining a 2.6% rise on the day.

BNB’s rally underscores the optimism of market participants following the collaboration. The token, which has a 24-hour trading volume of $1.6 billion, has seen a weekly increase of 4% and a monthly gain of 11.4%.