SEC Issues No-Action Letter Allowing Franklin Templeton's Onchain Money Market Fund FOBXX for Cash Management
AI Market Summary
The SEC's Investment Management Division issued no-action relief allowing certain registered funds to use Franklin Templeton's onchain money market fund (FOBXX) for cash management and collateral, with blockchain-based custody and ownership records. This signals incremental regulatory openness to tokenized fund rails inside regulated finance, potentially accelerating adoption of onchain settlement, intraday trading, and faster fund processing across asset managers and service providers.
Impact level
● Medium
Affected assets
NCSKOPENAI2USD/USDT-0.96%
AI Insight · NCSKOPENAI2USD/USDTAI Insight
▲ Bullish
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According to Odaily Planet Daily, a Fox Business crypto journalist said 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 guidance allows its registered funds to use Franklin Templeton's onchain money market fund, FOBXX, for cash management, including cash posted as collateral for securities lending.
Under the relief, Franklin Templeton can custody shares of the fund and track ownership through its blockchain-integrated system without adhering to certain legacy requirements built around physical securities. Franklin Templeton said the structure supports intraday trading, hourly net asset value calculations, and faster trade processing.
