Franklin Templeton Wins SEC Relief to Bring Tokenized Cash Into Traditional Funds

Franklin Templeton won SEC staff relief that could allow its traditional investment funds to use a blockchain-based money market fund for cash management and collateral, Bloomberg reported.

The relief gives Franklin’s conventional funds a way to invest in the Franklin OnChain U.S. Government Money Fund, known as BENJI. The SEC stressed that the letter is not formal approval and applies only to the specific arrangement and conditions outlined in the request.

Tokenized Cash Gains Ground

The relief would allow Franklin’s funds to use the OnChain Fund to manage cash and provide collateral for securities lending. Franklin expects individual fund boards to approve the arrangements before the funds can begin using it in the fourth quarter.

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The fund records transactions on a blockchain while Frank…

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