Franklin Templeton, an investment management company with $1.53 trillion in managed assets, has debuted a feature that reduces investors’ yields the second most when holding tokenized assets.
The “Intra-Day Yield” feature allows investors to generate yields proportionately to the time they retain tokenized security, even if they are transferred before the end of the day. Additionally, investors can earn yields on non-bank days, including holidays and weekends.
This feature is integrated into Franklin Templeton’s tokenization platform benge. The company said current models of Crypto Industry could calculate yield over a long period of time.
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“(…) Intraday yields are designed to solve the century-old inefficiencies of traditional finance: delays and strict nature of yield calculations and distribution.”
Yields are calculated at different intervals depending on the asset class. Although it is usually expressed in annual terms, payments can be made in scheduled increments. In some cases, higher yields can be linked to holding assets for longer periods of time.
“In most legacy systems, yields are calculated only at the end of the trading day and distributed monthly, meaning that during a single session, the transfer or trade often misses proportional dividends or interest revenues related to actual holding times,” Baston said.
The company is in one of the largest tokenized financial funds, with a total assets of approximately $750 million under the Franklin-on-Chain US Government Money Fund.
Related: Franklin Templeton launches Bitcoin, Ether Index ETF
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Real-world talkrable yield assets include debt instruments such as the US Treasury Department and corporate debt, as well as stocks issued by individual companies. According to data from RWA.xyz, the market capitalization of tokenized assets reached $23.14 billion on June 9th, from $15.75 billion in early January, representing an increase of 46.92% per year.
Other asset managers supporting tokenized funds include BlackRock and Vanek. In total, these two companies manage tokenized Treasury Department as of June 9th, more than $2.94 billion.
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