Franklin Templeton plans to use BENJI tokenized fund in ETFs and mutual funds

Franklin Templeton plans to use its tokenized Franklin Onchain U.S. Government Money Fund, known as BENJI, as a holding or source of collateral in ETFs and mutual funds involving about $2.6 billion in assets. The SEC has allowed the structure under a no-action position, permitting Franklin Templeton funds to use BENJI for cash management and collateral purposes, although each fund’s board must still approve the plans. The firm manages more than 130 ETFs with about $82 billion in ETF assets and approximately $790 billion in mutual fund assets. It distributes BENJI through digital wallets and plans to introduce more tokenized products for cash and collateral management across its broader fund range. The tokenized-asset market has surpassed $38 billion.

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