Franklin Templeton retrofits money market funds for tokenized stablecoin market

Franklin Templeton is amending institutional money market funds to support stablecoin reserves and onchain cash use without launching new crypto-native products.

Franklin Templeton has amended two Western Asset institutional money market funds (MMFs) to plug directly into the emerging US stablecoin regime and tokenized cash infrastructure rather than launching new crypto native products.

According to a release shared with Cointelegraph, Franklin Templeton is adapting the two long‑running Western Asset institutional funds so they can be used more directly in US GENIUS‑aligned stablecoin reserve structures and blockchain‑enabled distribution channels, without changing their status as Securities and Exchange Commission‑registered 2a‑7 MMFs.

The changes are designed to allow the funds to serve as regulated, government-backed collateral for payment stablecoins and other tokenized cash uses without altering their core regulatory status.

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