Franklin Templeton has obtained a no-action letter from the SEC and plans to use $2.6 billion in BENJI for ETFs and mutual funds

Asset management company Franklin Templeton plans to incorporate the tokenized money market fund Franklin Onchain U.S. Government Money Fund (BENJI) as holdings or collateral into exchange-traded funds (ETFs) and mutual funds, involving an asset scale of approximately $2.6 billion, with the earliest launch possible in the fourth quarter.

The U.S. Securities and Exchange Commission (SEC) has approved a no-action letter for this structure, allowing funds under Franklin Templeton to use BENJI for cash management and collateral purposes, but it still requires approval from the boards of the respective funds. The company currently manages over 130 ETFs and approximately $82 billion in ETF assets, with mutual fund assets around $790 billion.

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 has now exceeded $38 billion.