Franklin Templeton pitches BENJI as an onchain rate in Pendle discussion
RWA Signal Insight
U.S. TreasuriesFranklin Templeton is positioning its BENJI tokenized money market fund as a foundational onchain rate and collateral asset for institutional DeFi markets. The flagship Franklin OnChain US Government Money Fund (FOBXX) has expanded across 11 blockchains, with total assets across all variants now exceeding $2 billion. A significant regulatory milestone occurred on August 12, 2026, when the SEC issued a no-action letter permitting Franklin Templeton’s registered funds and ETFs to utilize BENJI shares for cash management and securities-lending collateral. This development enables the direct integration of blockchain-based fund shares into regulated institutional balance sheets. Furthermore, the firm is exploring yield optimization strategies through partnerships with protocols like Pendle to establish BENJI as a benchmark onchain interest rate. While the platform has seen substantial growth, including a $150 million issuance of sgBENJI on the XRP Ledger in October 2026, the firm remains focused on institutional and qualified investors. This shift marks a critical evolution in how traditional asset managers leverage public blockchain infrastructure for real-time custody and capital efficiency.
Key points
- Franklin Templeton's BENJI tokenized fund assets now exceed $2 billion across 11 blockchains.
- SEC no-action letter allows registered funds to use BENJI as collateral for securities lending.
- October 2026 saw $150 million of sgBENJI issued on the XRP Ledger.
- The firm is collaborating with Pendle to integrate BENJI into institutional yield optimization strategies.
Background
The Franklin OnChain US Government Money Fund (FOBXX) is a tokenized money market fund that maintains a stable $1.00 net asset value by investing primarily in U.S. government securities. Unlike traditional funds that use private databases for record-keeping, it utilizes public blockchains to record ownership directly, allowing for real-time transaction processing and transparency.