Franklin Templeton has secured relief from the U.S. Securities and Exchange Commission that could allow its traditional investment funds to use a blockchain-based money market fund for cash management and collateral, according to Bloomberg. The relief clears a path for Franklin’s conventional funds, including exchange-traded funds and mutual funds, to invest in the Franklin OnChain U.S. Government Money Fund, known as BENJI, with the arrangement potentially taking effect as early as the fourth quarter of 2026.
The SEC emphasized that the staff letter is not a formal approval and applies only to the specific arrangement and conditions outlined in Franklin Templeton’s request. Under the plan, the OnChain Fund would be used to manage cash and provide collateral for securities lending. Individual fund boards are still expected to approve the arrangements before implementation begins. Franklin Templeton currently oversees approximately $2.6 billion in tokenized money market fund assets and plans to launch additional tokenized products that could serve as cash or collateral, signaling deeper integration of blockchain technology within traditional investment frameworks.
