Franklin Templeton Receives SEC No-Action Relief to Use $2.6B BENJI in ETFs and Mutual Funds

Asset manager Franklin Templeton plans to use its tokenized money market fund, Franklin Onchain U.S. Government Money Fund (BENJI), as holdings or collateral within exchange-traded funds (ETFs) and mutual funds, involving approximately $2.6 billion in assets, with a potential launch as early as Q4. The U.S. Securities and Exchange Commission (SEC) has granted no-action relief for this structure, allowing Franklin Templeton's funds to use BENJI for cash management and collateral purposes, though approval from each fund's board is still required. The company currently manages over 130 ETFs with approximately $82 billion in ETF assets, and mutual fund assets of around $790 billion. Franklin Templeton has already distributed tokenized funds via digital wallets and plans to introduce more tokenized products for cash or collateral management across its broader fund lineup. The tokenized asset market has now surpassed $38 billion.