Franklin Templeton Wins SEC Approval for Tokenized Asset Holdings
Franklin Templeton has received clearance from the SEC to hold tokenized assets in its traditional investment funds. The regulatory relief allows eligible funds to invest in Franklin's blockchain-based U.S. government money market fund, known as the OnChain U.S. Government Money Fund. This fund uses BENJI tokens to represent shares and records transactions on blockchain networks.
The OnChain Fund launched in 2021 and currently has $1.98 billion in assets under management as of April 29. Franklin Templeton plans to use this structure to manage fund cash more precisely, earn additional yield, and reduce excess liquidity requirements.
Sandy Kaul, head of digital assets and innovation at Franklin Templeton, stated that the firm wants to develop more tokenized products that could serve as cash or collateral across its investment funds. The company also plans to acquire crypto investment company 250 Digital in the second quarter of 2026.