Franklin Templeton has announced plans to acquire 250 Digital, a spinoff of crypto-native investment firm CoinFund that manages liquid cryptocurrency investment strategies. The deal will form the foundation of a new business unit called Franklin Crypto once it is finalized. The acquisition signals a significant expansion of the global asset manager’s presence in the digital asset space.
250 Digital came into existence earlier this year when CoinFund separated its liquid strategies business into a standalone entity, allowing CoinFund to concentrate on venture investing. Franklin Templeton’s acquisition will bring the 250 Digital investment team and all liquid cryptocurrency strategies previously operated by CoinFund under its umbrella. Franklin Templeton has also indicated it will invest directly in those strategies as part of the agreement, though the financial terms of the deal have not been disclosed.
Christopher Perkins is set to lead Franklin Crypto, with Seth Ginns serving as chief investment officer. Franklin Templeton digital assets veteran Tony Pecore will also play a senior role as the firm works to broaden its crypto investment platform for institutional clients. The combined leadership team is intended to position Franklin Crypto as a comprehensive institutional offering.
The transaction will also incorporate BENJI tokens, which represent ownership shares in the Franklin OnChain US Government Money Fund, known as FOBXX. Franklin Templeton tokenized this regulated money market fund in 2021, making it one of the earlier examples of a traditional financial product brought on-chain. The inclusion of BENJI tokens reflects the firm’s broader strategy of integrating blockchain-based financial instruments into its product suite.
The deal is expected to close in the second quarter of 2026, pending the execution of definitive agreements, client consents, and other standard closing conditions. Franklin Templeton’s digital asset division currently manages approximately $1.8 billion in assets and has been building its crypto presence since 2018. The firm was also among the first to launch a US-listed spot Bitcoin ETF in 2024, alongside major peers such as BlackRock.
The acquisition is taking place against a backdrop of a prolonged downturn in cryptocurrency markets, with Bitcoin trading roughly 45% below its peak of over $126,000 recorded in October 2025. Despite the challenging conditions, Franklin Templeton views the environment as an opportunity rather than a deterrent. The firm’s head of innovation, Sandy Kaul, told The Wall Street Journal that the market decline helped create the right conditions to act. “This big selloff that we had in the crypto markets is creating a very unique opportunity that really made us all decide that this is the right time to pull the trigger,” Kaul said.
Franklin Templeton argues that periods of market weakness tend to attract talent and allow firms to build long-term infrastructure at more favorable terms. The formation of Franklin Crypto reflects the company’s intention to deepen its institutional crypto capabilities rather than scale back amid volatility. The move underscores a broader trend of traditional asset managers increasing their commitment to digital assets even as market conditions remain uncertain.
Originally reported by CoinTelegraph.
