Written by Zoltan Vardaistaff writerReviewed by Robert Lakinstaff editor

Written by Zoltan Vardaistaff writer

Reviewed by Robert Lakinstaff editor

SEC allows Franklin Templeton funds to invest in onchain money fund

Latest NewsPublishedAug 13, 2026

The SEC stated it will not pursue enforcement action if Franklin Templeton’s funds start investing cash in the asset manager’s own tokenized money market fund.

Franklin Templeton received the regulatory nod to invest in its own blockchain-based money-market fund under specific guardrails, without having to adhere to physical custody regulations.

The Securities and Exchange Commission (SEC) issued a no-action letter on Wednesday stating it won’t take enforcement action if Franklin Templeton fund managers invest cash in the Franklin OnChain U.S. Government Money Fund, an interest-bearing tokenized fund that invests in US government securities and aims to maintain a stable $1 share price.

The SEC will also allow the affiliated transfer agent, Franklin Templeton Investor Services (FTIS), to act as custodian for the tokenized funds and hold their private keys without adhering to existing physical-custody rules. It comes in response to Franklin Templeton’s formal no-action request letter sent earlier on Wednesday. 

Franklin Templeton oversees $2.5 billion in onchain assets through its tokenized funds, as the fifth-largest tokenized asset manager, as reported by RWA.xyz.

The fund giant introduced a dedicated crypto division and acquired crypto asset manager 250 Digital in June, as part of its push into crypto and tokenization.

The SEC’s letter described 12 conditions, including requiring Franklin Templeton to maintain systems that prevent unauthorized instructions, and requiring FTIS to maintain administrative controls, such as the ability to correct, freeze, migrate or restore records.

Magazine: How Hong Kong is turning tokenized bonds into real market infrastructure

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• SEC
• Asset Management
• RWA Tokenization
• Tokenization
• Law
• Industry

More on the subject

‘DeFi doesn’t exist anymore,’ just onchain finance: Andre Cronje

1 hour ago

Zoltan Vardai

Binance bStocks pass xStocks as second-largest tokenized stock issuer

2 hours ago

Helen Partz

Securitize falls 16% after earnings miss, tokenization revenue drops

3 hours ago

Zoltan Vardai

‘DeFi doesn’t exist anymore,’ just onchain finance: Andre Cronje

1 hour ago

Zoltan Vardai

Binance bStocks pass xStocks as second-largest tokenized stock issuer

2 hours ago

Helen Partz

Securitize falls 16% after earnings miss, tokenization revenue drops

3 hours ago

Zoltan Vardai