SEC Approves Franklin Templeton's Use of Tokenized Fund BENJI

The U.S. Securities and Exchange Commission (SEC) has granted a no-action letter to Franklin Templeton, permitting the asset manager to allocate a portion of its liquidity to the tokenized fund BENJI. This approval signifies a regulatory acknowledgment that funds are not required to adhere to certain custody requirements typically applied to paper assets. BENJI operates on the Stellar blockchain alongside traditional accounting methods, with over 99.5% of its assets invested in U.S. government securities. This development paves the way for broader adoption of tokenized real-world assets (RWAs) within mainstream fund management, potentially transforming how traditional funds handle and incorporate digital assets.