DeFi & NFT

Story: Franklin Templeton Gets SEC Green Light to Buy Into Its Own 12-Condition Tokenized Fund

By Pankaj K

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The 12 Conditions and What FTIS Has to Do. One of the core requirements is that Franklin Templeton must build out systems specifically…

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Franklin Templeton's $2.5 Billion Onchain Push. Franklin Templeton isn't new to this space. The firm manages $2.

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What the SEC's Move Actually Means. The no-action letter format is worth paying attention to. The SEC didn't change any rules here.

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Franklin Templeton just got a rare regulatory pass. The SEC issued a no-action letter Wednesday allowing the asset manager's fund managers to invest directly into the Franklin…

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That's a pretty big deal. Normally, fund managers can't just park cash into affiliated products without triggering a tangle of custody requirements.

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One of the core requirements is that Franklin Templeton must build out systems specifically designed to block unauthorized transactions. That's the baseline.

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That's a lot of operational infrastructure for what might look, on the surface, like a fairly routine money-market fund. But that's kind of the point.

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No details yet on exactly how Franklin Templeton plans to build those systems, or what timeline they're working with.

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Franklin Templeton isn't new to this space. The firm manages $2.5 billion in on-chain assets right now, which puts it at fifth-largest among tokenized asset managers globally,…

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And they've been moving fast. The firm launched a dedicated crypto division not long ago, signaling that digital assets weren't going to stay a side project.

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Related: SEC Plans Crypto Rules as CLARITY Act Sits Stuck in Senate

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Put it all together: $2.5 billion under management on-chain, a new crypto division, an acquisition of a crypto asset manager, and now a no-action letter from the SEC letting them…

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The no-action letter format is worth paying attention to. The SEC didn't change any rules here. It didn't pass new guidance or issue a formal rulemaking.

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But it's still meaningful. For months — really, for years — traditional asset managers have been watching the tokenized asset space and wondering where the regulatory lines are.

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Stablecoin and tokenized treasury adoption has grown sharply across institutional players in recent years.

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