SEC Clears Franklin Templeton for Tokenized Assets in Traditional Funds

Franklin Templeton has received clearance from the SEC to include tokenized assets in its traditional investment funds, paving the way for greater flexibility and potential benefits in cash management.

The relief, granted through a no-action letter, allows eligible Franklin funds to invest in the company's blockchain-based U.S. Government Money Fund, known as the Franklin OnChain U.S. Government Money Fund.

The fund uses BENJI tokens to represent shares and has a recordkeeping structure that utilizes blockchain networks for transactions and anonymous shareholder information.

Franklin Templeton plans to develop more tokenized products that can serve as cash or collateral across its investment funds, with the goal of managing fund cash more precisely and earning additional yield while reducing excess liquidity requirements.