SEC allows Franklin Templeton funds to invest in onchain money fund
Summary
The SEC granted Franklin Templeton a no-action letter allowing its fund managers to invest in the Franklin OnChain U.S. Government Money Fund, a tokenized money-market fund backed by U.S. government securities and designed to keep a stable $1 share price. The SEC also said it would not enforce physical-custody rules against Franklin Templeton Investor Services, which can serve as custodian for the tokenized funds and hold private keys. The approval comes with 12 conditions, including safeguards against unauthorized instructions and administrative controls to correct, freeze, migrate, or restore records. Franklin Templeton manages about $2.5 billion in onchain assets and has expanded its crypto and tokenization efforts.
