Franklin Templeton receives SEC clearance to integrate its tokenized money market fund (BENJI) into traditional ETFs and mutual funds, expanding tokenized asset adoption in mainstream finance.
Tech & Launches ·
Franklin Templeton has obtained regulatory approval to embed tokenized assets within conventional investment vehicles, marking a shift in how the asset manager deploys blockchain-based holdings. The firm will incorporate its Franklin OnChain U.S. Government Money Fund (BENJI)—currently representing approximately $2.6 billion in assets under management—as either a direct holding or collateral component in ETFs and mutual funds, with implementation potentially beginning in the fourth quarter. This represents an evolution of Franklin's tokenization approach, moving beyond simply creating digital versions of existing products to leveraging those tokens operationally across fund structures.
The SEC clearance permits digitally native instruments to function within traditional fund wrappers, opening new operational possibilities. Franklin intends to develop additional tokenized products beyond BENJI that can serve dual roles as cash equivalents or collateral throughout its broader fund ecosystem. The pathway remains partly uncertain: while the regulatory framework is now in place, the actual deployment timeline and full scope of additional tokenized offerings have yet to be detailed.