Franklin Templeton Transforms Its Money Market Funds into Stablecoin Reserve Tools

Odaily News Franklin Templeton has announced the blockchain compatibility of two of its institutional money market funds, aiming to position itself for the growing market of tokenized assets and regulated stablecoins. This update applies to the Western Asset Institutional Treasury Obligations Fund (LUIXX) and the Western Asset Institutional Treasury Reserves Fund (DIGXX), both managed by its affiliate Western Asset Management. Roger Bayston, Head of Digital Assets at Franklin Templeton, stated that traditional funds are beginning to go on-chain, so the focus is on making them more accessible to a wider audience. It is reported that the LUIXX fund has been modified to comply with the GENIUS Act, which sets reserve standards for regulated stablecoins. The fund currently holds only short-term U.S. Treasury securities with maturities of less than 93 days and can be used as a stablecoin reserve tool. The DIGXX fund has launched a digital institutional share class specifically designed for distribution on blockchain platforms, allowing approved intermediaries to record and transfer ownership of fund shares on-chain. (CoinDesk)