BENJI Token Powers Seamless Onchain Settlement

At the heart of this innovation lies the BENJI token, issued by Franklin Templeton Investments. BENJI is a tokenized money market fund that earns yield daily and operates on the Stellar blockchain.

In the high-stakes world of OTC derivatives, speed is everything. Traditional financial systems often fail to keep up with the pace of global markets. Custodian bottlenecks and wire transfer delays make capital inefficient and slow to respond, especially in cross-border transactions.

To overcome these inefficiencies, Nonco, a digital asset trading firm, partnered with SwapGlobal, a leading multi-dealer broker, and Franklin Templeton, a global investment firm, to demonstrate how Stellar blockchain can revolutionize real-time OTC trading using tokenized treasuries.

Nonco traders engaged in a derivative transaction with SwapGlobal using BENJI, a tokenized money market fund issued by Franklin Templeton Investments and operating on the Stellar blockchain. BENJI earns yield daily and is readily recognized by traders for its liquidity and capital efficiency.

This transaction, which involved a notional of USD 100 million in a derivative contract, also included a tokenized treasury note that was seamlessly transferred on-chain.

Despite the transaction's complexity and cross-border nature, Nonco completed settlement in less than one hour, a stark contrast to the typical 24-hour window required for traditional custodial and accounting procedures.

Moreover, the transaction was fully compliant with applicable regulations and ensured complete traceability of capital flows.

“This transaction showcases the potential of tokenized assets to revolutionize global finance. We are grateful to Franklin Templeton for issuing BENJI on Stellar and to SwapGlobal for their partnership in this endeavor,” said Charles Benisty, CEO of Nonco.

“We are excited to continue exploring the possibilities of blockchain technology for institutions.”

Institutions can now engage in derivative transactions with varying payoffs and maturities, transferring value instantly and securely across borders.

This capability is crucial for institutions involved in complex cross-border transactions, especially in emerging markets where rapid response times are essential for optimal capital use.

The Stellar network, recognized for its reliable and secure infrastructure, has been trusted for over a decade to facilitate cross-border payments and tokenization of assets.

With its low-cost transactions, instant settlement capabilities, and built-in compliance features, the Stellar blockchain provides an ideal platform for institutions engaging in real-time OTC trading.

“We are impressed by Nonco’s ability to quickly integrate and execute on new technologies. Together, we’ve demonstrated a use case that will be critical for institutions looking to engage in efficient and rapid OTC transactions,” said Martin Chaix, Global Head of FinTech at Franklin Templeton.

“We are excited to continue exploring partnerships that drive innovation in the financial industry.”

The use of tokenized treasuries like the BENJI token presents a blueprint for the future of collateral in global finance. Unlike traditional treasury collateral, tokenized assets remain on-chain and liquid, enabling efficient capital use.

They are transferred instantly and monitored on a transparent ledger, ensuring optimal efficiency and traceability, especially in the fast-moving OTC derivative market.

Furthermore, BENJI offers yield while being used as collateral, turning idle capital into an active financial asset. This eliminates the old trade-off between security and productivity, giving institutional traders a real edge in today's competitive markets.

The Stellar blockchain’s infrastructure supports a growing ecosystem of real-world assets, including tokenized treasuries, stablebonds, and digital payment assets.

With global reach across 180 countries, Stellar enables governments, fintechs, and financial institutions to issue, move, and settle tokenized assets in a unified ecosystem.

By supporting real-time issuance and transfer, the Stellar network removes traditional boundaries in finance and paves the way for financial access, especially in markets where traditional banking infrastructure is limited.

This collaboration between Nonco, Franklin Templeton, and SwapGlobal demonstrates how blockchain can rapidly deliver scalable, real-world solutions in institutional finance.