The SEC mentioned it won’t pursue enforcement motion if Franklin Templeton’s funds begin investing money within the asset supervisor’s personal tokenized cash market fund.
Franklin Templeton obtained the regulatory nod to put money into its personal blockchain-based money-market fund underneath particular guardrails, with out having to stick to bodily custody laws.
The Securities and Alternate Fee (SEC) issued a no-action letter on Wednesday stating it received’t take enforcement motion if Franklin Templeton fund managers make investments money within the Franklin OnChain U.S. Authorities Cash Fund, an interest-bearing tokenized fund that invests in US authorities securities and goals to keep up a steady $1 share value.
The SEC may also enable the affiliated switch agent, Franklin Templeton Investor Companies (FTIS), to behave as custodian for the tokenized funds and maintain their personal keys with out adhering to present physical-custody guidelines. It is available in response to Franklin Templeton’s formal no-action request letter despatched earlier on Wednesday.
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