Timeline
- 8.0
SEC lets Franklin Templeton funds invest in its onchain money fund
The SEC issued a no-action letter stating it will not pursue enforcement action if Franklin Templeton funds invest cash in the Franklin OnChain U.S. Government Money Fund (BENJI). The relief also allows affiliated transfer agent FTIS to act as custodian and hold private keys without adhering to existing physical-custody rules. This is a major regulatory milestone: the SEC explicitly permits a large asset manager to invest in its own tokenized money market fund and grants custody relief for digital assets. It advances institutional adoption of onchain funds and sets a precedent for adapting traditional fund rules to blockchain-based recordkeeping. The SEC's letter outlines 12 conditions, including systems to prevent unauthorized instructions and administrative controls for FTIS to correct, freeze, migrate, or restore records. Franklin Templeton manages $2.5 billion in onchain assets and is the fifth-largest tokenized asset manager, according to RWA.xyz.
- 8.0
SEC No-Action Letter Lets Franklin Templeton Funds Use Onchain BENJI
The U.S. SEC issued a no-action letter allowing Franklin Templeton's traditional registered funds to invest in its onchain BENJI/FOBXX tokenized money market fund. This is a regulatory first that directly permits conventional fund vehicles to hold a tokenized fund. This marks a significant regulatory milestone for tokenized financial products, signaling growing SEC clarity and acceptance of onchain fund infrastructure. It could accelerate institutional adoption of tokenized money market funds and encourage other traditional asset managers to integrate blockchain-based systems. FOBXX (Franklin OnChain U.S. Government Money Fund) invests primarily in U.S. government securities and relies on the BENJI blockchain system for record-keeping and ownership tracking. The no-action letter specifically permits Franklin's traditional registered funds to purchase shares of the tokenized fund, subject to the conditions outlined in the letter.