Franklin Templeton gets SEC clearance to add BENJI to ETFs

Franklin Templeton has secured U.S. regulatory clearance that could place its $726 million tokenized money-market fund inside conventional mutual funds and ETFs as early as the fourth quarter. Summary Franklin funds may use BENJI as a portfolio holding, cash position or collateral. The SEC relief covers custody rules under the Investment Company Act of 1940. Fund boards must approve the arrangement before individual products can adopt it. Franklin expects implementation as early as the fourth quarter, with an earlier start possible. SEC clearance allows Franklin funds to hold BENJI The U.S. Securities and Exchange Commission’s Division of Investment Management said in an Aug. 12 letter that it would not recommend enforcement action if Franklin Templeton’s registered funds hold shares of the Franklin OnChain U.S. Government Money Fund under the proposed custody arrangement. Known by the ticker FOBXX, the money-market fund records eligible share transactions on public blockchains, with each BENJI token representing one fund share. Its portfolio consists mainly of U.S. government securities, cash, and repurchase agreements backed by government securities or cash. The relief applies to...