Franklin Templeton receives first U.S. regulatory clearance to use its $2.6B tokenized money-market fund BENJI as collateral in traditional ETFs and mutual funds, effective as early as Q4.
Regulation & Gov ·
Franklin Templeton received regulatory clearance to incorporate its tokenized money-market fund BENJI into traditional ETFs and mutual funds, a move that could begin as soon as Q4. The fund, which manages approximately $2.6 billion in assets, can now serve as a holding or collateral asset within conventional investment vehicles [https://x.com/WuBlockchain/status/2090523333968482782]. This represents an expansion of the firm's tokenized asset strategy beyond standalone on-chain products.
The integration shifts how tokenized real-world assets function within mainstream fund infrastructure. Rather than requiring investors to explicitly access blockchain-native platforms, digitally native products can now be embedded within familiar fund structures, potentially broadening institutional participation in tokenized assets. Franklin also signaled plans to launch additional tokenized products that could serve as cash equivalents or collateral across its broader fund ecosystem.
The scope of SEC clearance remains unspecified in available disclosures, as does whether other asset managers have pursued similar arrangements. The timeline and mechanics of how BENJI will be priced, settled, and reported within traditional fund vehicles have not been detailed.