Franklin Templeton agrees to buy CoinFund spinoff to expand crypto investment offering: WSJ
Following the close of the deal, its new crypto arm will be called Franklin Crypto, with strategies focused on institutional investors.
Franklin Templeton has agreed to acquire a spinoff from digital asset investment firm CoinFund to expand its cryptocurrency investment capabilities, according to a Wall Street Journal report. The deal will see the asset management giant establish a new division called Franklin Crypto, which will focus on developing investment strategies specifically designed for institutional investors.
Franklin Templeton, which manages approximately $1.5 trillion in assets, has been gradually expanding its presence in the digital asset space over recent years. The company previously launched a money market fund on blockchain technology and has explored various cryptocurrency-related investment products. CoinFund, founded in 2015, has established itself as a prominent player in the crypto investment landscape, focusing on early-stage blockchain companies and digital asset strategies.
The acquisition reflects the growing institutional appetite for cryptocurrency exposure and the increasing mainstream adoption of digital assets by traditional financial firms. Major asset managers have been racing to build out their crypto capabilities as institutional clients seek regulated and sophisticated investment vehicles in the digital asset space. This move positions Franklin Templeton to compete more directly with firms like BlackRock and Fidelity, which have also expanded their cryptocurrency offerings.
The financial terms of the deal were not disclosed, and it remains unclear when the transaction is expected to close.
Source: The Block
