Franklin Templeton Receives SEC No-Action Relief, Plans to Use $2.6 Billion BENJI for ETFs and Mutual Funds

Odaily News - Asset manager Franklin Templeton plans to incorporate its tokenized money market fund, the Franklin Onchain U.S. Government Money Fund (BENJI), as holdings or collateral within exchange-traded funds (ETFs) and mutual funds, involving approximately $2.6 billion in assets. The initiative could launch as early as the fourth quarter.

The U.S. Securities and Exchange Commission (SEC) has granted no-action relief for this structure, allowing Franklin Templeton's funds to use BENJI for cash management and collateral purposes, though it still requires approval from each fund's board of directors. The company currently manages over 130 ETFs and approximately $82 billion in ETF assets, alongside roughly $790 billion in mutual fund assets.

Franklin Templeton has already distributed the tokenized fund through digital wallets and plans to launch additional tokenized products for cash or collateral management across its broader fund lineup. The tokenized asset market currently exceeds $38 billion in size. (Bitcoin.com News)