SEC Clears Franklin Mutual Funds and ETFs to Invest in BENJI
The no-action letter lets Franklin Templeton use blockchain custody controls and preserve transfer-agent records for its tokenized money fund.
- On Wednesday, the Securities and Exchange Commission issued a no-action letter allowing Franklin Templeton's registered funds to invest in its own OnChain U.S. Government Money Fund , bypassing traditional physical custody requirements.
- Franklin Templeton Investor Services will act as custodian for tokenized assets, holding private keys and maintaining official shareholder records alongside blockchain transaction data to resolve conflicts with rules designed for physical certificates.
- Compliance requires 12 conditions, including FTIS maintaining administrative controls such as the ability to restore records, freeze unauthorized instructions, and correct blockchain-related errors, ensuring oversight despite tokenized infrastructure.
- Bloomberg ETF analyst James Seyffart noted the decision provides a route for conventional investment products to gain direct exposure to the blockchain-based fund, enabling cash management and liquidity functions.
- This regulatory clearance supports Franklin Templeton's broader digital asset strategy as the firm, managing about $1.78 trillion in total assets, continues expanding tokenized fund operations across multiple blockchain networks through acquisitions and partnerships.
14 Articles
14 Articles
SEC clears Franklin mutual funds and ETFs to invest in BENJI
Franklin Templeton’s registered mutual funds and ETFs have received regulatory clearance to invest in the firm’s blockchain-based OnChain U.S. Government Money Fund after the U.S. Securities and Exchange Commission’s investment management division issued a no-action letter covering the custody structure.…
Key news: Franklin Templeton received a non-action letter from the SEC that allows his funds to invest cash in their own Tokenized Money Market Fund. The SEC also authorized FTIS to act as custodian of the Tokenized Funds and maintain its private keys without adhering to the current physical custody rules. The manager manages $2.5 billion in onchain assets and ranks fifth among the largest Tokenized Asset Managers, according to RWA.xyz. Franklin…
Franklin Templeton Gets SEC Green Light to Buy Into Its Own 12-Condition Tokenized Fund
Franklin Templeton just got a rare regulatory pass. The SEC issued a no-action letter Wednesday allowing the asset manager’s fund… Read the original on Franklin Templeton Gets SEC Green Light to Buy Into Its Own 12-Condition Tokenized Fund. For more crypto news and analysis, visit TheCurrencyAnalytics.com.
Franklin Templeton Wins SEC Nod for Its Tokenized Fund Blockchain News ETHNews
The SEC issued a no-action letter allowing Franklin Templeton’s registered mutual funds and ETFs to invest in its tokenized BENJI fund. The relief exempts Franklin from specific physical custody provisions of the Investment Company Act of 1940. Franklin Templeton Investor Services keeps control of the Stellar wallets and private keys for participating funds. The decision leans on a 1992 precedent and requires at least three independent audits pe…
Franklin Templeton Secures SEC Approval for BENJI Tokenized Fund Investments
Key Highlights SEC grants approval for Franklin Templeton’s registered funds to access tokenized BENJI directly. Mutual funds and ETFs managed by Franklin can now include BENJI holdings following custody authorization. BENJI operates through Stellar blockchain infrastructure paired with conventional transfer-agent oversight. Regulatory relief addresses custody challenges that previously blocked registered fund participation. Franklin broade…
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