Franklin Templeton manages assets of 1.79 trillion USD, exploring regulatory exemptions for tokenized fund trading

Global investment management company Franklin Templeton is exploring regulatory exemptions that would allow tokenized money market funds and ETFs to trade on blockchain trading venues. On October 9, the company met with staff from the U.S. Securities and Exchange Commission (SEC) cryptocurrency working group to discuss legal issues related to pricing, fees, and asset pools.

The agenda included whether investors could exchange blockchain fund shares for tokenized national market system stocks through blockchain trading venues, and whether liquidity providers could charge service fees. Related issues involve pricing rules under the Investment Company Act and whether exemptions are needed. Regarding tokenized ETFs, Franklin Templeton also discussed forming trading pairs with tokenized stocks, approved payment stablecoins, or tokenized money market funds, as well as whether liquidity pools need to obtain investment company regulatory exemptions.

As of September 30, the preliminary disclosed assets under management amounted to $1.79 trillion. Franklin Templeton's blockchain fund record-keeping business began with the launch of the Franklin Onchain U.S. Government Money Fund in 2021. The BENJI token represents shares of this fund, and transferring the token will simultaneously transfer the corresponding shares, with related transactions recorded and tracked by the Benji Technology Platform.