Franklin Resources Explores Tokenization And Secondaries While Shares Trade Below Value

• Franklin Resources (NYSE:BEN) has launched an institutional collateral program with Binance, allowing tokenized U.S. money market fund shares to be used as collateral.
• The firm reports over US$3.5b in assets under management in its Franklin Lexington private equity secondaries strategy within roughly a year of its launch.
• Franklin Resources continues to invest in AI and blockchain as part of its broader digital transformation efforts.

For you as an investor, these moves show how Franklin Resources is positioning itself across both traditional and digital platforms. NYSE:BEN remains rooted in its core asset management business while also building out capabilities in private equity secondaries and tokenized assets that sit alongside its existing fund lineup.

The Binance collateral program, developments in private equity secondaries and ongoing AI and blockchain work collectively indicate a company testing new business models within a regulated framework. You may want to follow how these initiatives influence product breadth, client mix and fee structures over time, as those elements can be important inputs into your own view of NYSE:BEN.

Stay updated on the most important news stories for Franklin Resources by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Franklin Resources.

We've flagged 2 risks for Franklin Resources. See which could impact your investment.

Investor Checklist

Quick Assessment

• ⚖️ Price vs Analyst Target: At US$27.03, Franklin Resources is trading roughly in line with the US$27.36 analyst price target.
• ✅ Simply Wall St Valuation: Simply Wall St estimates the shares are trading about 15.5% below fair value, suggesting potential valuation support.
• ✅ Recent Momentum: The stock has returned about 4.0% over the past 30 days.

There is only one way to know the right time to buy, sell or hold Franklin Resources. Head to Simply Wall St's company report for the latest analysis of Franklin Resources's Fair Value.

Key Considerations

• 📊 The Binance collateral program, together with growth in private equity secondaries and digital initiatives, adds new fee pools alongside the core asset management business.
• 📊 Monitor how tokenized money market collateral usage, assets in the Franklin Lexington strategy, and AI or blockchain spending appear in the revenue mix and margins.
• ⚠️ With a 4.88% dividend that is not fully covered by earnings, income focused investors may want to keep an eye on payout sustainability as these projects scale.

Dig Deeper

For the full picture, including more risks and rewards, check out the complete Franklin Resources analysis. Alternatively, you can visit the community page for Franklin Resources to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com