SEC staff have cleared Franklin Funds to use an onchain money fund for cash management and collateral, a narrowly scoped clearance that lets a regulated money market fund operate through a bl
SEC staff have cleared Franklin Funds to use an onchain money fund for cash management and collateral, a narrowly scoped clearance that lets a regulated money market fund operate through a blockchain-based structure rather than a purely traditional one.
The clearance came through the Securities and Exchange Commission's Division of Investment Management, which published a staff no-action and interpretive letter addressed to Franklin Templeton. For related coverage, see Artificial Intelligence Summit –Malaysia 2026.
The letter is a staff-level position, not a formal rule change or a full Commission approval. It applies to Franklin Funds' use of an onchain money fund for two specific purposes named in the clearance: holding cash and posting collateral. For related coverage, see Fintech Revolution Summit –Singapore 2026.
Franklin Templeton has described preparing its institutional money market funds for tokenized finance, according to a company press release tied to the development. For related coverage, see Cyber ThaiX 2026.
Cash and collateral are distinct functions in fund operations. Cash covers day-to-day liquidity and settlement, while collateral is posted to back positions or obligations. The clearance links the same onchain money fund to both.
The fund at the center of the story is Franklin's onchain U.S. Government Money Fund, a regulated money market product tracked on its official product page. Running a money fund onchain means shares and records are maintained on a blockchain, which is why the clearance reads as a market-structure development rather than a routine fund filing.
For readers following tokenized finance, the significance is the pairing itself: a regulated fund being sanctioned by SEC staff for use in institutional cash and collateral flows, not a generic blockchain concept.
The development positions Franklin Funds using an onchain structure within institutional workflows. Reporting on the program has tied it to institutions trading tokenized money funds and using them as collateral, as detailed by The Block.
The staff involvement is what makes this notable from a regulatory-news perspective. It is a concrete fund use case rather than a broad policy shift, and the clearance should be read only against the specific Franklin Funds facts it addresses. Coverage of the clearance has also appeared in independent reporting.
The move adds to momentum for regulated financial products moving onchain, a trend that has drawn scrutiny alongside other institutional shifts such as Binance's reported UAE staffing changes and continued interest in onchain infrastructure like Ethereum staking. For now, the clearance stands as a real-world adoption signal grounded in one fund manager's specific use case.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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