The SEC’s Division of Investment Management said it would not recommend enforcement action if Franklin Templeton’s U.S. registered funds hold shares of its onchain money market fund through an affiliated blockchain-integrated custody and recordkeeping system. The funds can use shares of the Franklin OnChain U.S. Government Money Fund for cash management, including securities-lending collateral. The SEC granted relief from three paragraphs of Rule 17f-2 subject to 12 conditions covering account segregation, transaction controls and independent verification. The fund, whose blockchain-recorded shares are known as BENJI, had assets of approximately $726.6 million as of August 12 according to RWA.xyz. The fund invests at least 99.5% of its assets in government securities, cash and fully collateralized repurchase agreements.
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