Franklin Templeton Launches “Franklin Crypto” Following 250 Digital Buyout

Franklin Templeton has agreed to acquire 250 Digital, a crypto investment firm spun out of CoinFund, in a move that underscores its growing commitment to institutional digital asset investing.

Key Points

• Franklin Templeton is acquiring 250 Digital, including its full team and crypto investment strategies.
• The acquisition supports the firm’s expansion into institutional digital asset investing through a new division, “Franklin Crypto.”
• Franklin Crypto will target institutional clients like pension funds and sovereign wealth funds, offering structured crypto investment solutions.
• The deal is expected to close in Q2 2026, pending regulatory approvals, client consents, and final agreements.

Deal Structure and Strategic Integration

Under the agreement, Franklin Templeton will absorb the entire 250 Digital team along with its cryptocurrency investment strategies, previously managed under CoinFund. The integration is expected to enhance the firm’s capabilities in managing liquid digital asset portfolios.

In addition, the company confirmed it will commit capital to these strategies, reinforcing its long-term interest in the sector. While the financial terms remain undisclosed, the firm noted that its BENJI tokenized fund will be used as part of the payment consideration.

Looking ahead, the transaction will close in the second quarter of 2026. However, completion remains subject to regulatory approvals, client consents, and final contractual agreements.

Launch of “Franklin Crypto”

Following the acquisition, Franklin Templeton plans to consolidate its expanded capabilities under a new division called Franklin Crypto. The new unit will primarily target institutional clients, including pension funds and sovereign wealth funds.

By focusing on these segments, the firm aims to address the growing demand for structured and reliable crypto investment solutions.

Moreover, the company stated that Franklin Crypto will build upon its existing platform, enhancing both its blockchain investments and venture capital activities.

Leadership and Team Alignment

To support this transition, leadership responsibilities will be shared between executives from both organizations. Christopher Perkins and Seth Ginns, who previously held roles at CoinFund, will co-lead the new division alongside Franklin Templeton’s Tony Pecore.

This combined leadership structure will merge external expertise with internal experience. All three leaders will report directly to Sandy Kaul, the firm’s Head of Innovation, ensuring alignment with broader strategic goals.

Notably, 250 Digital itself was only recently established in January 2026 as a spinout from CoinFund, making this acquisition a swift but strategic development.

Strategic Timing and Market Context

The timing of the acquisition also reflects broader market dynamics. In comments to The Wall Street Journal, Sandy Kaul cited the recent downturn in crypto markets as a key factor in the decision.

She explained that such periods can create unique entry opportunities for institutional players. At the same time, she emphasized the increasing need for stable, well-structured platforms to support experienced crypto professionals.

These factors together have shaped Franklin Templeton’s decision to move forward with the deal at this stage.

Building on a Multi-Year Crypto Strategy

The acquisition marks the latest step in Franklin Templeton’s multi-year push into digital assets. Since entering the space in 2018, the firm has steadily expanded its capabilities and team, which now includes around 50 professionals.

It has launched several key products, including the BENJI tokenized money market fund in 2021. The firm was also among the early participants in U.S. spot Bitcoin and Ethereum ETFs in 2024.

With the addition of 250 Digital and the launch of Franklin Crypto, the firm is positioning itself to play a larger role in the next phase of institutional crypto adoption.