Franklin Templeton, a global investment management organization with a colossal $1.53 trillion in managed assets, has recently introduced a function that presents investors with real-time yield for their tokenized assets.
A Tuesday press release detailed that the novel “Intraday Yield” feature lets investors accumulate yield equivalent to the duration they retain a tokenized security. This holds true even if the tokenized security is transferred before the day concludes. Moreover, investors can amass yield on non-business days, inclusive of weekends and public holidays.
This cutting-edge functionality will be incorporated into Benji, Franklin Templeton’s tokenization platform. The firm expressed that this could potentially enhance the cryptocurrency sector’s existing model of yield calculation over extended periods. A spokesperson for Franklin Templeton commented, “Intraday Yield is aimed at addressing a long-standing inefficiency in conventional finance: the inflexible and delayed nature of yield calculation and distribution.”
The yield varies in its calculation intervals depending on the asset class. Although it is generally presented in annual terms, payouts can be scheduled in regular increments. In certain scenarios, larger yields may be linked to holding the asset for a more extended duration.
Franklin Templeton is the force behind one of the largest tokenized treasury funds, with approximately $750 million in total assets under its Franklin OnChain U.S. Government Money Fund.
The tokenization of real-world, yield-bearing assets such as US Treasurys, corporate bonds, and individual company equities is gaining traction. As per data from RWA.xyz, the market capitalization of tokenized assets escalated to $23.14 billion on June 9, an uplift from $15.75 billion at the beginning of the year, marking a 46.92% surge year to date.
Other asset managers endorsing tokenized funds include BlackRock and VanEck. Together, these two firms manage more than $2.94 billion in tokenized Treasurys as of June 9.
