SEC Clears Tokenized Fund for $872 Billion in ETFs and Mutual Funds

The Securities and Exchange Commission (SEC) has granted Franklin Templeton's tokenized fund, BENJI, clearance to enter $872 billion worth of ETFs and mutual funds.

The SEC's Division of Investment Management issued a no-action letter on August 12, 2026, allowing Franklin Templeton's registered funds to hold shares of BENJI for cash management and securities lending programs.

BENJI is a tokenized money market fund that trades under the ticker FOBXX and has approximately $726 million in holdings. It was launched by Franklin Templeton on Stellar in 2021 and now spans nine public blockchains.

The relief targets Section 17(f) of the Investment Company Act of 1940, which requires funds to keep securities in a vault and maintain written records of deposits and withdrawals. The SEC staff agreed that these requirements do not apply to uncertificated shares held by an affiliated transfer agent.