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SEC Blueprint Unlocks Tokenized Cash Management for Franklin Templeton Funds

Original sourceTechTimes

Summary

The SEC's Division of Investment Management has issued its first no-action letter, allowing Franklin Templeton's fund complex to use a blockchain-based tokenized money market fund (BENJI) for cash management without traditional physical custody. The letter outlines 12 conditions, forming a regulato…

Key points

  • Provides a regulatory precedent for tokenized funds, affecting compliance and product design in asset management.
  • This is the SEC's first clear regulatory blueprint for a tokenized fund, supporting the legitimization of tokenized assets.
  • Lower compliance costs for tokenized money market funds may attract more issuers.

Editorial note

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