Franklin Templeton received SEC clearance to hold its tokenized BENJI money-market fund inside ETFs and mutual funds, a first for digital-native assets in traditional fund structures.
Alpha Score of 72 reflects strong overall profile with strong momentum, weak value, moderate quality, strong sentiment.
Franklin Templeton plans to put tokenized money-market assets inside conventional ETFs and mutual funds after receiving a first-of-its-kind U.S. regulatory clearance, according to the firm. The structure lets blockchain-based holdings live inside portfolios without investors needing to buy tokenized products directly.
Franklin will use its Franklin Onchain U.S. Government Money Fund, known as BENJI, as a holding or collateral inside exchange-traded funds and mutual funds, a Bloomberg report said. The strategy could start as early as the fourth quarter, though each fund's board must approve it first.
The Securities and Exchange Commission signed off via a no-action position, clearing Franklin funds to use the tokenized money-market product for cash management and collateral. Sandy Kaul, Franklin's head of digital assets and innovation, called it the first time the SEC has allowed a digitally native product inside traditional financial products.
The move goes beyond issuing blockchain versions of existing securities. Franklin already distributes tokenized funds through digital wallets. Now it wants those assets inside conventional portfolios to improve liquidity management and make idle cash more productive.
The reach is substantial. Franklin oversees more than 130 ETFs globally with about $82 billion in assets. Its mutual funds hold roughly $790 billion. The tokenized money-market funds themselves manage about $2.6 billion.
The market for tokenized assets has climbed above $38 billion, according to RWA.xyz. Rivals including BlackRock and BNY have expanded blockchain-based fund and settlement initiatives. Tokenized assets settle faster, transfer around the clock and move more easily as collateral than their traditional counterparts.
Franklin's structure adds a layer most investors won't see. Instead of asking clients to buy tokenized products directly, the firm can quietly use them inside traditional funds as part of routine cash management.
For broader context on tokenized equity growth, see our coverage on Bybit adding Meta and Tesla xStocks as tokenized equities hit $1.48B.
Kaul said the SEC had already completed its review of BENJI tokens inside Franklin's fund structure. The regulatory path for clients to use digital wallets is settled. Franklin also plans to issue additional tokenized products that could serve as cash or collateral across more of its fund lineup. Tokenization is moving from the wrapper around a security to the machinery inside it.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.