Lorenzo Letter #12: Franklin Templeton Launches Franklin Crypto
Franklin Templeton deepens crypto push, Tether engages Big Four account firm for long-awaited audit, and Nium launches a stablecoin card issuance platform.
Welcome to the Lorenzo Letter, your weekly update on stablecoins, DeFi, tokenization, crypto legislation, and more.
In This Issue:
- Franklin Templeton Launches Franklin Crypto, Acquires 250 Digital
- Tether Moves Toward First Full Audit of USDT Reserves
- Nium Launches Stablecoin Card Issuance Platform
Franklin Templeton Launches Franklin Crypto, Acquires 250 Digital
Franklin Templeton is deepening its digital asset push with the launch of Franklin Crypto, a new institutional investment unit being formed alongside its planned acquisition of 250 Digital. The move brings over 250 Digital’s investment team and liquid crypto strategies, expanding Franklin’s ability to offer actively managed crypto products to pensions, sovereign wealth funds, and other large allocators.
The new division will be co-led by Christopher Perkins, Seth Ginns, and Tony Pecore, reporting to Sandy Kaul. Franklin Templeton, which manages roughly $1.7 trillion globally, has been building in digital assets since 2018 and now appears to be formalizing that effort into a dedicated institutional platform as traditional finance demand for crypto exposure matures.
A notable part of the deal is its structure: Franklin Templeton plans to use tokenized registered securities in the settlement process, including its onchain money market fund FOBXX, also known as BENJI. That makes the transaction an early example of a major asset manager exploring how blockchain-based securities can be used in real-world M&A, not just investment products.
Full Story:
Bart Hillerich
Tether Moves Toward First Full Audit of USDT Reserves
Tether has engaged a Big Four accounting firm to conduct its first full financial statement audit, marking a major shift in transparency for the issuer of the world’s largest stablecoin, USDT. The audit will comprehensively review assets, liabilities, reserves, and internal controls, going beyond the periodic attestations that have historically defined stablecoin reporting.
The move follows years of scrutiny, including Tether’s 2021 settlement with the New York Attorney General over reserve disclosures. While attestations verify balances at a point in time, a full audit represents a significantly higher standard, offering deeper insight into financial health and risk management practices.
CEO Paolo Ardoino framed the audit as a milestone in building long-term trust, emphasizing its importance for the hundreds of millions of users and businesses relying on USDT globally.
Bart Hillerich
Nium Launches Stablecoin Card Issuance Platform
Global payments company Nium has introduced a new API-driven platform that enables businesses to issue payment cards funded directly by stablecoin balances. The cards operate across Visa and Mastercard, allowing stablecoins to be spent seamlessly at hundreds of millions of merchants worldwide.
Rather than replacing existing financial rails, Nium’s platform is designed to bridge stablecoins with traditional payment infrastructure. Businesses can integrate crypto-funded cards into familiar user experiences without needing to manage multiple providers or build custom payment flows, simplifying adoption.
Despite nearly $200 billion in stablecoins circulating, most businesses still treat them as a settlement tool, converting to fiat quickly rather than holding long-term. By embedding stablecoins into card networks, Nium is targeting this gap, aiming to make digital dollars more usable in everyday commerce.
Full Story:
Bart Hillerich
