SEC Clears Franklin Templeton Funds to Invest in Tokenized BENJI Fund

TLDR

• SEC clears Franklin funds to invest directly in the tokenized BENJI money fund.

• Franklin mutual funds and ETFs can now hold BENJI under SEC custody relief.

• BENJI combines Stellar blockchain records with traditional transfer-agent controls.

• The SEC relief removes physical custody hurdles for Franklin’s registered funds.

• Franklin expands BENJI’s role across cash management and institutional finance.

Franklin Templeton secured SEC staff relief allowing its registered funds to invest directly in its blockchain-based BENJI money market fund. The decision removes key custody barriers that previously complicated direct holdings by mutual funds and ETFs. As a result, Franklin can integrate tokenized government money funds more deeply across its traditional investment products.

SEC Clears Franklin Funds for Direct BENJI Exposure

The SEC Division of Investment Management issued the no-action letter under the Investment Company Act. The relief covers Section 17(f) and Rule 17f-2 requirements governing custody arrangements for registered investment companies. Franklin funds can hold FOBXX shares without following several rules designed for physical securities.

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