SEC2026-08-13 09:41:22SEC No-Action Letter Lets Franklin Templeton Use On-Chain Fund FOBXX for Cash and CollateralThe U.S. Securities and Exchange Commission's Division of Investment Management has issued a no-action letter to Franklin Templeton, permitting its registered funds to use the on-chain money market fund FOBXX, also known as BENJI, to manage cash and collateral via blockchain instead of following traditional custody rules. The letter, issued under Section 17(f) of the Investment Company Act of 1940 and Rule 17f-2, allows registered funds to hold FOBXX shares without satisfying certain physical vault requirements. This supports intraday trading, hourly net asset value calculations, and faster transaction processing. FOBXX primarily invests in U.S. government securities, aims to maintain a stable share price of $1, and has expanded to multiple blockchains. The development was reported by CoinDesk.1560
SEC2026-08-12 19:56:52SEC Division Issues No-Action Letter to FTDA_US Over Franklin Templeton's FOBXXThe 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.1520
