Quick answer: Franklin Templeton’s BENJI is the onchain share token of the Franklin OnChain U.S. Government Money Fund, the first U.S.-registered mutual fund to use a public blockchain as its official record of ownership. The trading firm Nonco used BENJI shares as collateral for over-the-counter derivatives on the Stellar network, so the collateral kept earning money-fund yield instead of sitting idle. It is a real, sourced example of a tokenized regulated fund doing a job beyond speculation.
Part of our guide: Asset Tokenization.
Updated 07/17/2026. By Jake Claver. Educational content, not investment advice.
The plainest way to describe this story is collateral that earns while it works. A regulated money market fund now exists as a token on a public blockchain, and an institutional trading desk posted that token as security for a derivatives trade. That is narrower and more concrete than sweeping claims about blockchain transforming global trade, and the narrower version is the one the sources actually support.
What BENJI actually is
BENJI is the share token of the Franklin OnChain U.S. Government Money Fund (ticker FOBXX), a U.S.-registered 1940 Act money market fund managed by Franklin Templeton. One BENJI token represents one share, and the fund aims to hold a stable $1.00 share price while investing almost entirely in government securities, cash, and government-backed repurchase agreements. Franklin Templeton’s 2023 release described it as the first U.S.-registered fund to use a public blockchain to process transactions and record share ownership.
The fund launched on Stellar in 2021. Marking five years, Franklin Templeton and the Stellar Development Foundation reported the BENJI suite at roughly $1.98 billion in assets under management as of April 29, 2026, with the investor base up more than 140% between April 2024 and March 2026. The token now runs across several public blockchains, but Stellar still anchors the holder base: onchain data recorded about 95% of distinct BENJI holders on Stellar. The fund distributes dividends onchain daily and, since 2025, supports peer-to-peer share transfers, with cumulative P2P volume above $211 million by March 2026.
What Nonco actually did
Nonco is an institutional cryptocurrency trading firm founded in 2023 that provides noncustodial liquidity to asset managers and financial institutions, with monthly trading volume it puts above $5 billion. According to Stellar’s Nonco case study, the firm used BENJI as collateral for over-the-counter derivatives, in a transaction with SwapGlobal, on the Stellar network.
That is the whole point, and it has nothing to do with trade paperwork. Ordinary cash collateral earns little and ties up capital. Because BENJI is a money market fund share that pays daily yield, using it as collateral lets the posted margin keep earning while it secures the trade. The case study cites settlement in seconds, a transparent public ledger, and transaction costs of a fraction of a cent. The practical claim is capital efficiency: collateral that offsets its own carrying cost.
Why yield-bearing collateral is the real story
Collateral sits at the center of modern finance, and most of it is idle by design. Tokenizing a regulated, yield-paying fund changes the trade-off. Instead of choosing between a safe, liquid asset and an earning one, a desk can post an instrument that is both, and move it in seconds rather than through a multi-day settlement chain. The figures above are the evidence that this is being used, not just proposed: real AUM, real holders, real onchain transfer volume.
Where the regulators and standard-setters are looking
Tokenized money market funds are not a fringe experiment anymore; official institutions have started studying them directly. The Bank for International Settlements published a Bulletin on tokenised money market funds, the International Monetary Fund issued a note on tokenized finance, and Singapore’s central bank documented design questions for tokenized funds in its Project Guardian work on operationalising tokenised funds. The World Bank has examined tokenization in its own research as well. That body of work is worth reading as the sober counterweight to the marketing: it treats tokenized funds as an operational and legal design problem, not a slogan.
What the technology changes, and what it does not
Stellar’s design goal, set out in the Stellar Consensus Protocol paper from the Stellar Development Foundation, is transferring value across untrusted intermediaries in seconds. That speed and low cost are what make onchain collateral practical. What tokenization does not change is the nature of the underlying asset. BENJI is still a money market fund subject to Franklin Templeton’s management and U.S. regulation; the token is a wrapper around fund shares, not a new kind of money. The technology story (fast, cheap, transferable shares) and any investment question (whether to hold a money market fund at all) are separate, and should stay separate.
Why this matters
Most crypto claims are about price. This one is about mechanics: a regulated fund, an institutional counterparty, and a concrete use where the tokenized form does something the paper form cannot do as easily. If tokenization has a durable role in finance, it will look more like this (yield-bearing collateral that settles in seconds) than like speculation. Watching whether more desks adopt tokenized funds as collateral, and whether regulators codify how they can be used, is the useful signal to follow.
Common questions
What is Franklin Templeton’s BENJI token?
BENJI is the onchain share token of the Franklin OnChain U.S. Government Money Fund (FOBXX), a U.S.-registered money market fund. One token equals one share, the fund targets a stable $1.00 share price, and it was the first U.S.-registered mutual fund to use a public blockchain as its official system of record. It launched on Stellar in 2021.
How did Nonco use BENJI on Stellar?
Nonco, an institutional crypto trading firm, used BENJI shares as collateral for an over-the-counter derivatives transaction with SwapGlobal on the Stellar network. Because BENJI is a yield-paying money market fund share, the collateral kept earning while it secured the trade, and it settled in seconds at very low cost.
Is BENJI only on Stellar?
No. BENJI now operates across several public blockchains, but Stellar remains the anchor: onchain data recorded roughly 95% of distinct BENJI holders on Stellar as of the five-year mark, with the suite at about $1.98 billion in assets under management as of April 29, 2026.
Does tokenizing a money market fund make it riskier or different?
Tokenization changes how shares are held and transferred, not what the fund invests in. BENJI is still a regulated money market fund managed by Franklin Templeton. The token is a wrapper around fund shares. Standard money-fund considerations still apply, and this article is educational, not investment advice.
Why are the BIS, IMF, and MAS interested in tokenized funds?
Official institutions are studying tokenized money market funds as a serious operational and legal design question. The BIS published a Bulletin on them, the IMF issued a note on tokenized finance, and Singapore’s MAS documented design issues in its Project Guardian work on operationalising tokenised funds.
This content is educational only. It is not tax, legal, or investment advice. Check primary sources and speak with a qualified professional before making financial decisions.
