The SEC has issued a no-action letter allowing Franklin Templeton to integrate tokenized money-market funds as collateral or portfolio holdings within traditional mutual funds and ETFs. The Franklin OnChain U.S. Government Money Fund (BENJI), which uses blockchain-based tokens to represent fund ownership, serves as the primary offering. This decision is historic as it marks the first time the SEC has granted this specific type of regulatory comfort. Franklin Templeton manages over 130 ETFs representing approximately 82 billion dollars in assets worldwide, alongside a mutual fund business of roughly 790 billion dollars, making this authorization particularly significant for the market. This integration aims to improve capital efficiency, liquidity, and collateral management within the ETF ecosystem.
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