Bullish
SEC Grants Franklin Templeton Relief for Blockchain-Based Fund Custody
17:30
SEC no-action letter permits Franklin Templeton registered funds to use $FOBXX for cash management and securities lending collateral, enabling on-chain custody.
Woofun AI reports that the SEC's Division of Investment Management issued a no-action letter to Franklin Templeton. This relief allows the firm's registered funds to utilize its onchain money market fund, $FOBXX, for cash management purposes, including serving as collateral for securities lending.
WOOFUN AI
Impact Assessment · Quick Read
This regulatory clearance marks a significant step for institutional adoption of blockchain-based custody solutions. By permitting the use of $FOBXX for securities lending collateral, Franklin Templeton can enhance capital efficiency within its registered funds. This precedent may encourage other asset managers to explore similar on-chain treasury management strategies.
Generated by WOOFUN AI · For reference only, not investment advice
Comments
No comments yet.