Franklin Templeton received a no-action letter from the SEC Division of Investment Management on August 12, allowing its traditional funds to invest in shares of its Franklin OnChain U.S. Government Money Fund. The firm plans to use this tokenized fund, which runs on the Stellar blockchain and represents shares via the BENJI token, for cash management and securities lending collateral. Franklin Templeton aims to deploy the structure as early as the fourth quarter, pending approval from individual fund boards. The BENJI suite currently manages 1.98 billion dollars in assets as of April 29. This development could eventually enable the tokenized money market fund to be integrated into traditional ETFs and mutual funds.
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