The U.S. Securities and Exchange Commission's Division of Investment Management has issued a no-action letter to FTDA_US, according to a post on X from a reporter who covers cryptocurrency for Fox Business. The letter opens the door for FTDA_US's registered funds to manage their cash using Franklin Templeton's on-chain money market fund, FOBXX. The permission also extends to collateral related to securities lending. Under the exemption, Franklin Templeton is allowed to custody the fund shares and record ownership through the company's blockchain-integrated system. This means the firm does not have to comply with certain traditional rules that were drawn up for physical securities. Franklin Templeton said the arrangement can support intraday trading, hourly net asset value calculations, and faster processing of trades. The news was shared by the Fox Business reporter on X, citing the SEC's investment management division. The division's no-action letter is specific to FTDA_US and Franklin Templeton's FOBXX fund.
A Fox Business reporter covering crypto said in a post on X that the U.S. Securities and Exchange Commission's Division of Investment Management has issued a no-action letter to FTDA_US. The letter permits FTDA_US's registered funds to use Franklin Templeton's on-chain money market fund, FOBXX, to manage cash. That authorization extends to collateral posted through securities lending.
The exemption allows Franklin Templeton to custody the fund shares and record ownership through its blockchain-integrated system. As a result, the company does not need to comply with certain traditional rules that were designed with physical securities in mind.
Franklin Templeton said the structure supports intraday trading, hourly net asset value calculations, and faster trade processing.
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