Franklin Templeton Secures SEC Approval to Use $2.6 Billion BENJI for ETFs and Mutual Funds

Franklin Templeton plans to incorporate its tokenized money market fund, the Franklin Onchain U.S. Government Money Fund (BENJI), as collateral or holdings in exchange-traded funds (ETFs) and mutual funds, involving an asset scale of approximately $2.6 billion, with a potential launch as early as the fourth quarter. The U.S. Securities and Exchange Commission (SEC) has granted a no-action letter permitting this structure, allowing Franklin Templeton's funds to use BENJI for cash management and collateral purposes, although approval from each fund's board is still required. The company currently manages over 130 ETFs with approximately $82 billion in ETF assets and around $790 billion in mutual fund assets. Franklin Templeton has distributed tokenized funds through digital wallets and plans to launch more tokenized products for cash or collateral management across its broader fund product line. The market size for tokenized assets currently exceeds $38 billion.

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