Franklin Templeton Modernizes Funds for Blockchain and Stablecoins

Franklin Templeton has updated two money market funds to support stablecoin reserves and blockchain-based distribution, enabling regulated on-chain use while maintaining traditional regulatory standards.

Franklin Templeton has updated two institutional money market funds, managed by Western Asset, to support integration with stablecoin reserves and blockchain-based financial systems. The Western Asset Institutional Treasury Obligations Fund now invests exclusively in short-term U.S. Treasuries, aligning with the GENIUS Act’s requirements for stablecoin reserve assets. The Western Asset Institutional Treasury Reserves Fund introduced a digital share class, enabling approved intermediaries to record and transfer ownership using blockchain infrastructure, allowing for faster settlement and 24/7 transactions. Both funds remain SEC-registered Rule 2a-7 money market funds, maintaining strict regulatory standards while enabling use as regulated collateral for stablecoins and on-chain cash management. These changes aim to modernize institutional access to mutual funds, offering interoperability and flexibility for clients, and reflect a broader industry trend toward integrating traditional finance products with digital asset infrastructure. The updates are designed to facilitate institutional adoption of on-chain infrastructure using familiar products, without launching new crypto-native funds.