Franklin Templeton receives SEC staff relief to integrate tokenized assets into mutual funds and ETFs for its $721M onchain money market fund.
Regulation & Gov ·
Franklin Templeton has obtained relief from SEC staff to incorporate blockchain-based tokenized assets into its mutual funds and exchange-traded products, building on its existing $721M onchain money market fund. The relief letter, grounded in a 1992 precedent addressing master-feeder structures, permits the firm to maintain ownership records through Stellar blockchain wallets while expanding its tokenized offerings across traditional fund vehicles.
The SEC staff imposed a dozen conditions tied to the relief, including mandatory annual reviews by fund boards and independent confirmation of holdings. The letter functions as staff guidance rather than a formal SEC rule or statement, and does not represent official Commission approval or disapproval of the underlying approach.
The decision clarifies a pathway for established asset managers to bridge onchain infrastructure with conventional fund structures, though the scope of permitted integrations and any future regulatory evolution remain to be seen.