The United States Securities and Exchange Commission issued a no-action letter allowing Franklin Templeton funds to invest cash in the Franklin OnChain U.S. Government Money Fund, a tokenized money-market product targeting a stable one-dollar share price. Under the relief, Franklin Templeton Investor Services can serve as custodian for the tokenized assets and hold private keys without traditional physical-custody arrangements, provided the firm follows twelve detailed safeguards for systems, controls, and record management. The decision supports Franklin Templeton’s broader expansion in blockchain-based products, following its crypto division launch and 250 Digital acquisition, and may encourage further institutional use of tokenized government securities and other regulated onchain investment structures.
This update represents a notable development in the Crypto sector. Organizations and founders tracking this space should evaluate potential strategic and technical implications on their operations.