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Franklin Templeton turns money market fund into stablecoin reserve vehicle
Source: CryptoNewsNet Original Title: Franklin Templeton turns money market fund into stablecoin reserve vehicle Original Link: Cryptocurrency-friendly investment firm Franklin Templeton has made two of its institutional money market funds compatible with blockchain-based finance, in a move aimed at positioning itself for the growing market around tokenized assets and regulated stablecoins.
The updates apply to the Western Asset Institutional Treasury Obligations Fund (LUIXX) and the Western Asset Institutional Treasury Reserves Fund (DIGXX). Both are managed by Franklin Templeton affiliate Western Asset Management.
LUIXX has been modified to comply with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a law passed in 2025 that sets reserve standards for regulated stablecoins.
The fund now holds only short-term U.S. Treasuries with maturities under 93 days, allowing it to be used as a stablecoin reserve vehicle.