Franklin Templeton to Acquire CoinFund Spinoff for Institutional Crypto Push: WSJ

Bitcoin Magazine

Franklin Templeton to Acquire CoinFund Spinoff for Institutional Crypto Push: WSJ

Franklin Templeton has agreed to acquire 250 Digital, a crypto investment firm formed from CoinFund, according to Wall Street Journal reporting. The goal with this acquisition is to improve its digital asset strategy and create a dedicated institutional crypto division.

The deal sets the foundation for a new business line called Franklin Crypto. The unit targets pensions, sovereign wealth funds, and large institutional investors seeking exposure to digital assets through regulated investment structures.

Terms of the transaction remain undisclosed. The acquisition reflects continued expansion by traditional financial institutions into crypto markets despite a prolonged drawdown in digital asset valuations.

Franklin Templeton manages more than $1.7 trillion in assets. The firm entered digital assets in 2018 and built a team that focuses on blockchain systems, tokenized instruments, and crypto investment products. The group includes more than 50 professionals across investment and technology roles.

The firm stands among the earliest issuers of U.S. spot bitcoin exchange-traded funds launched in 2024.

The acquisition of 250 Digital brings two senior crypto investment managers into the Franklin structure. Christopher Perkins and Seth Ginns lead the firm. Both worked at CoinFund before the spinout and held roles in institutional investment and digital asset markets.

The new division will focus on portfolio construction for institutional capital. The strategy includes liquid token markets, venture exposure, and structured products tied to blockchain infrastructure.

Institutional demand for bitcoin and crypto

Franklin Templeton head of innovation Sandy Kaul said market conditions in digital assets opened a path for talent acquisition and platform expansion. Kaul described a shift in institutional demand patterns and said the firm views the current environment as a point for structural buildout.

The crypto market has faced a major drawdown after prior peaks. Bitcoin has declined from highs above $126,000 to levels near half that value. Total digital asset market value has contracted by trillions. Trading volumes and valuations across token sectors have compressed across multiple cycles.

Institutional participation has not retreated at the same pace. Large asset managers continue to file for new products, expand custody relationships, and develop tokenization systems that connect traditional securities with blockchain rails.

Franklin Templeton has expanded partnerships with digital asset firms to support tokenized products. One partnership with Binance enables use of tokenized fund shares as collateral for trading activity. The structure links traditional money market products with crypto market infrastructure.

The acquisition aligns with a broader trend among global asset managers that entered crypto markets through exchange-traded products, custody partnerships, and pilot tokenization projects. 

These firms continue to extend their reach into trading, venture investing, and infrastructure development tied to blockchain systems.

This post Franklin Templeton to Acquire CoinFund Spinoff for Institutional Crypto Push: WSJ first appeared on Bitcoin Magazine and is written by Micah Zimmerman.