Franklin Templeton transforms its money market funds into stablecoin reserve tools

Odaily Planet Daily reports that Franklin Templeton has announced the compatibility of its two institutional money market funds with blockchain finance, aiming to position itself in the growing market of tokenized assets and regulated stablecoins. This update applies to the Western Asset Institutional Treasury Obligations Fund (LUIXX) and the Western Asset Institutional Treasury Reserves Fund (DIGXX), both managed by its subsidiary Western Asset Management. Franklin Templeton’s Head of Digital Assets Roger Bayston stated that traditional funds have already begun to go on-chain, so the focus is on making them more accessible to more people.

The LUIXX fund has been modified to comply with the GENIUS Act, which sets reserve standards for regulated stablecoins. The fund currently holds only short-term U.S. Treasury bonds with maturities of less than 93 days, which can be used as reserve tools for stablecoins.

The DIGXX fund has introduced a new category of digital institutional shares designed for distribution on blockchain platforms, allowing approved intermediaries to record and transfer ownership of fund shares on-chain. (CoinDesk)