Franklin Templeton Claims a First in the US: BENJI to Be Used in ETFs Following SEC Approval

Following approval from the SEC, Franklin Templeton plans to use its tokenized money market fund, BENJI, as an asset or collateral in traditional ETFs and mutual funds.

According to information reported by Bloomberg, Franklin Templeton states that it has received the first regulatory approval in the U.S. for the use of digitally native products in traditional funds. While this does not mean the SEC has granted general permission for all digital assets, it paves the way for specific tokenized products to be utilized within traditional fund structures.

At the center of the plan is BENJI, known as the Franklin OnChain U.S. Government Money Fund. Issued as a digital representation on the blockchain, this money market fund is intended to be used as an asset held in portfolios or as collateral in ETFs and mutual funds. The timeline for the implementation is set for the fourth quarter of 2026 at the earliest.

BENJI Can Be Used in ETFs and Mutual Funds

Franklin Templeton currently manages approximately $2.6 billion in tokenized money market fund assets. In addition to BENJI, the company plans to launch new tokenized products across its fund family that can be utilized as cash or collateral.

This step moves Franklin Templeton’s blockchain strategy beyond merely issuing tokenized versions of traditional assets to the stage of using these products directly in fund management. However, the plan has not yet been implemented, and the Q4 timeline mentioned in the source is reported as the earliest period when the transaction could take place.