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SEC Clears Franklin Funds to Buy Its Tokenized Money Fund
The SEC's August 12 no-action letter removes investment restrictions on Franklin's $360M FOBXX fund, opening the door for broader institutional capital flows into blockchain-native money market funds.
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The SEC's Division of Investment Management issued a no-action letter on August 12, 2026, permitting Franklin Templeton's own funds to invest in the Franklin OnChain U.S. Government Money Fund (FOBXX).
The letter removes restrictions under the Investment Company Act that previously prevented other Franklin-managed funds from buying shares of FOBXX. Franklin can now route capital from its broader fund lineup into the tokenized money market fund, the SEC filing showed.
FOBXX, launched in April 2021, was the first U.S.-registered mutual fund to use a public blockchain for transaction processing and share recordkeeping. It holds U.S. government securities and fully collateralized repurchase agreements. Each share is represented as a BENJI token, processed on-chain. The fund started on Stellar and now runs on Arbitrum, Solana, Base, Polygon, Avalanche, and Ethereum.