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RWA Regulation

Franklin Templeton Gets SEC No-Action Nod to Use BENJI in ETFs

Franklin Templeton plans to use its tokenized money market fund, Franklin Onchain U.S. Government Money Fund (BENJI), as holdings or collateral in ETFs and mutual funds, involving about $2.6 billion in assets, potentially starting in Q4. The SEC has granted a no-action position allowing this structure, pending board approvals. The firm manages over 130 ETFs and $82 billion in ETF assets.

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AI take

The SEC's no-action position is notable less for what it authorizes than for what it signals: tokenized money market funds can sit inside mainstream fund wrappers, not just crypto-native ones. That matters because it treats on-chain fund shares as ordinary portfolio collateral, a category question regulators had left open. Franklin's scale in ETFs gives the structure a real test case rather than a pilot. The open question is whether board approvals and Q4 timing hold, and whether other asset managers read this as a template or a one-off.

Generated by AI for reference only.

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