Franklin Templeton, an funding administration firm with $1.53 trillion in property underneath administration, has debuted a characteristic that provides buyers yield right down to the second when holding tokenized property.
In keeping with a Tuesday announcement, the “Intraday Yield” characteristic will enable buyers to accrue yield proportional to the time they maintain a tokenized safety, even when it’s transferred earlier than the day’s finish. As well as, buyers can earn yield on non-banking days, together with holidays and weekends.
The characteristic will likely be built-in into Franklin Templeton’s tokenization platform Benji. The corporate stated it could possibly probably enhance the crypto trade’s present mannequin of calculating yield over an extended interval.
“[…] Intraday Yield is designed to unravel a century-old inefficiency in conventional finance: the delayed and inflexible nature of yield calculation and distribution,” a spokesperson for Franklin Templeton instructed Cointelegraph.
Yield is calculated at various intervals relying on the asset class. Whereas it’s sometimes expressed in annual phrases, payouts could be made in scheduled increments. In some instances, increased yields could also be tied to holding the asset for an extended interval.
“In most legacy programs, yield is barely calculated on the finish of the buying and selling day and distributed month-to-month, which means that buyers that switch or commerce throughout a single session usually miss out on the proportional dividend or curiosity earnings tied to their precise holding time,” the spokesperson stated.
The corporate is behind one of many largest tokenized treasury funds, with about $750 million in whole property underneath its Franklin OnChain U.S. Authorities Cash Fund.
Associated: Franklin Templeton launches Bitcoin, Ether index ETF
Demand for asset tokenization climbs in 2025
Tokenizable real-world, yield-bearing property embody debt devices similar to US Treasurys and company bonds, in addition to equities issued by particular person firms. In keeping with RWA.xyz knowledge, the market capitalization of tokenized property reached $23.14 billion on June 9, up from $15.75 billion in early January, representing a 46.92% improve 12 months thus far.
Different asset managers backing tokenized funds embody BlackRock and VanEck. Mixed, these two firms handle over $2.94 billion in tokenized Treasurys as of June 9.
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