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Franklin's Expansion in Digital Assets: Next Growth Engine?
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Key Takeaways
Franklin plans to acquire 250 Digital and launch Franklin Crypto to expand capabilities.
Franklin partnered with Binance on an institutional collateral program for digital asset trading.
BEN sees digital assets and alternatives as potential drivers of revenue diversification.
Franklin Resources (BEN - Free Report) is sharpening its focus on digital assets at a time when institutional interest in crypto-linked investment products is steadily maturing. The planned acquisition of 250 Digital, a cryptocurrency investment firm spun out of CoinFund, marks a strategic step by BEN toward expanding its capabilities and strengthening its presence in active digital asset management.
Alongside the deal, Franklin is launching Franklin Crypto, a dedicated unit aimed at expanding its institutional-grade crypto capabilities. In February 2026, the company partnered with Binance to launch an off-exchange institutional collateral program designed to improve capital efficiency and reduce counterparty risks in digital asset trading.
The initiative aligns with Franklin's long-term strategy of expanding beyond traditional mutual funds and actively diversifying its revenue streams. Past acquisitions, including Putnam Investments and Apera Asset Management, have strengthened its alternatives platform, which now oversees approximately $270 billion in alternative assets.
Digital assets represent a natural extension of this diversification strategy. As institutional investors seek regulated exposure to cryptocurrencies, tokenized assets, blockchain infrastructure and decentralized finance, Franklin is positioning itself as an early mover among traditional asset managers. According to the April 2026 announcement, with $1.8 billion in digital asset asset under management (AUM) as of late 2025, the company already has a meaningful foundation on which to build.
From a financial standpoint, Franklin’s expanding digital asset platform has the potential to become a meaningful long-term growth catalyst. The company continues to contend with industry headwinds, such as fee compression in traditional asset management, ongoing net outflows in certain segments and intensifying competition from low-cost passive investment products. By increasing its exposure to digital assets and alternative investments, areas that typically generate higher fee margins than traditional index strategies, Franklin could strengthen revenue growth, enhance profitability and diversify its earnings base over time.
Other Firms Push Into Digital Assets
Major finance firms, including BlackRock, Inc. (BLK - Free Report) and Interactive Brokers Group, Inc. (IBKR - Free Report) , have also been expanding into digital assets.
Since the approval of spot Bitcoin ETFs in January 2024, BlackRock’s flagship product, the iShares Bitcoin Trust (IBIT), has surged ahead to become the company’s leading revenue generator, outperforming several of its long-established equity and fixed-income funds. As of March 31, 2026, BlackRock’s AUM under digital assets was $60.7 billion, signaling a broader acceptance of cryptocurrencies within diversified portfolios.
In March 2026, Interactive Brokers launched a unified crypto trading platform for eligible individual investors in the European Economic Area through its regulated Ireland-based entity, Interactive Brokers Ireland Limited. The platform enables clients to trade digital assets and traditional securities within a single interface.
BEN’s Price Performance & Zacks Rank
The company’s shares have gained 38.4% in the past six months against the industry’s 6.5% decline.
View the Zacks #1 Rank List
Image: Bigstock
Franklin's Expansion in Digital Assets: Next Growth Engine?
Key Takeaways
Franklin Resources (BEN - Free Report) is sharpening its focus on digital assets at a time when institutional interest in crypto-linked investment products is steadily maturing. The planned acquisition of 250 Digital, a cryptocurrency investment firm spun out of CoinFund, marks a strategic step by BEN toward expanding its capabilities and strengthening its presence in active digital asset management.
Alongside the deal, Franklin is launching Franklin Crypto, a dedicated unit aimed at expanding its institutional-grade crypto capabilities. In February 2026, the company partnered with Binance to launch an off-exchange institutional collateral program designed to improve capital efficiency and reduce counterparty risks in digital asset trading.
The initiative aligns with Franklin's long-term strategy of expanding beyond traditional mutual funds and actively diversifying its revenue streams. Past acquisitions, including Putnam Investments and Apera Asset Management, have strengthened its alternatives platform, which now oversees approximately $270 billion in alternative assets.
Digital assets represent a natural extension of this diversification strategy. As institutional investors seek regulated exposure to cryptocurrencies, tokenized assets, blockchain infrastructure and decentralized finance, Franklin is positioning itself as an early mover among traditional asset managers. According to the April 2026 announcement, with $1.8 billion in digital asset asset under management (AUM) as of late 2025, the company already has a meaningful foundation on which to build.
From a financial standpoint, Franklin’s expanding digital asset platform has the potential to become a meaningful long-term growth catalyst. The company continues to contend with industry headwinds, such as fee compression in traditional asset management, ongoing net outflows in certain segments and intensifying competition from low-cost passive investment products. By increasing its exposure to digital assets and alternative investments, areas that typically generate higher fee margins than traditional index strategies, Franklin could strengthen revenue growth, enhance profitability and diversify its earnings base over time.
Other Firms Push Into Digital Assets
Major finance firms, including BlackRock, Inc. (BLK - Free Report) and Interactive Brokers Group, Inc. (IBKR - Free Report) , have also been expanding into digital assets.
Since the approval of spot Bitcoin ETFs in January 2024, BlackRock’s flagship product, the iShares Bitcoin Trust (IBIT), has surged ahead to become the company’s leading revenue generator, outperforming several of its long-established equity and fixed-income funds. As of March 31, 2026, BlackRock’s AUM under digital assets was $60.7 billion, signaling a broader acceptance of cryptocurrencies within diversified portfolios.
In March 2026, Interactive Brokers launched a unified crypto trading platform for eligible individual investors in the European Economic Area through its regulated Ireland-based entity, Interactive Brokers Ireland Limited. The platform enables clients to trade digital assets and traditional securities within a single interface.
BEN’s Price Performance & Zacks Rank
The company’s shares have gained 38.4% in the past six months against the industry’s 6.5% decline.
Image Source: Zacks Investment Research
Currently, Franklin carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.