SEC clears Franklin Templeton funds to use BENJI for onchain cash management

The U.S. Securities and Exchange Commission has cleared Franklin Templeton funds to use the BENJI onchain system for cash management, a step that lets a major asset manager route fund cash operations through blockchain rails rather than conventional back-office processes.

The clearance came through the SEC’s Division of Investment Management, which issues no-action and interpretive letters that set the staff’s position on how registered funds may operate. The development was reported by The Block.

What the SEC clearance allows Franklin Templeton funds to do

The clearance permits Franklin Templeton funds to use BENJI, an onchain system, within their cash management workflows. It applies to fund operations, not to a retail token launch or a yield product marketed to individual investors. For related coverage, see Artificial Intelligence Summit –Malaysia 2026.

In plain terms, the change lets the funds handle cash management functions using a blockchain-based system rather than only traditional recordkeeping. This is an operational permission tied to how the funds manage cash, and it is distinct from crypto trading activity. For related coverage, see Fintech Revolution Summit –Singapore 2026.

This builds on earlier SEC staff action allowing Franklin funds to treat an onchain money fund as cash and collateral, extending the same posture into day-to-day cash management. For related coverage, see Ethereum Staking Reaches 34% as Proposal Targets Validator Rewards.

Why BENJI matters for onchain fund infrastructure

BENJI is presented in the reporting as infrastructure for onchain cash management, meaning it is part of the operational plumbing rather than a consumer-facing product. That framing makes this an infrastructure story, not a yield or liquidity story.

Moving cash management onto blockchain rails can affect how fund transactions are settled and recorded, potentially streamlining operational steps that currently run through separate systems. The significance here rests on a large asset manager integrating those rails into regulated fund processes, as described by The Block’s reporting.

Institutional use of blockchain infrastructure matters for tokenized finance because operational tooling is where these systems are tested against real fund requirements. The SEC staff sign-off signals a degree of regulatory comfort with that tooling inside a registered fund context.

What this could signal for regulated tokenized finance next

Regulatory clearance is typically a prerequisite for wider institutional implementation, so a staff position of this kind can serve as a reference point for other asset managers weighing similar onchain workflows.

The move sits at the intersection of traditional fund oversight and blockchain infrastructure, an area also touched by broader policy efforts such as the crypto market structure legislation advancing in Congress. A single clearance for one fund family, however, is not the same as broad regulatory acceptance across the industry.

Whether other registered funds follow will depend on how the SEC staff treats comparable requests, and the current letter speaks only to the Franklin Templeton funds it addresses.

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.