Franklin Templeton Wins SEC Relief for Tokenized Funds
Franklin Templeton has received SEC staff relief to allow eligible funds to invest in its blockchain-based OnChain U.S. Government Money Fund. The tokenized fund can support cash management and securities lending collateral within traditional investment portfolios.
The OnChain Fund uses Stellar as its main public blockchain, while Franklin Templeton Investor Services keeps the official ownership record. This setup supports hourly net asset value calculations, intraday trading, and faster transaction processing.
The relief gives Franklin funds another way to manage cash and securities lending collateral. Franklin said its tokenized money market fund could later serve ETFs and mutual funds, bringing blockchain-based fund shares into standard portfolios.