SEC No Objection Letter Allows Franklin Templeton Funds to Use On-Chain FOBXX for Cash Management

SEC permits Franklin Templeton funds to hold FOBXX shares via blockchain, bypassing traditional custody rules under Section 17(f) and enabling faster intraday trading and NAV calculations.

Woofun AI reports that the U.S. SEC's Investment Management Division issued a no-objection letter to Franklin Templeton, permitting its registered funds to utilize the on-chain money market fund FOBXX (BENJI) for cash and collateral management. This approval allows funds to hold FOBXX shares without complying with specific physical vault requirements mandated by Section 17(f) and Rule 17f-2 of the Investment Company Act of 1940.

The regulatory guidance facilitates intraday trading, hourly net asset value calculations, and accelerated transaction processing. FOBXX primarily invests in U.S. government securities, targets a stable $1 share price, and has expanded its operations across multiple blockchains.