SEC Greenlights Franklin Templeton's Self-Investment in Tokenized Money Market Fund

The US Securities and Exchange Commission (SEC) has granted permission to Franklin Templeton to invest its own money in its tokenized money market fund, known as the Franklin OnChain U.S. Government Money Fund.

The SEC issued a no-action letter on August 12, stating that it would not recommend enforcement action against Franklin Templeton if its fund managers invested in the tokenized fund under certain conditions.

The Franklin OnChain U.S. Government Money Fund is a tokenized money market fund that invests in US Treasuries and aims to maintain a $1 share price, with fund ownership recorded on a blockchain.

The SEC also allowed Franklin Templeton Investor Services (FTIS), a Franklin Templeton affiliate, to act as custodian for the tokenized fund and hold its private keys, exempting it from existing rules for storing physical certificates.