Franklin Templeton said two money market funds are now eligible for stablecoin reserve use and blockchain distribution.
Two institutional money market funds managed by Franklin Templeton’s affiliate, Western Asset Management, are now eligible for use in two segments of the market for tokenised money market funds.
The firm said the first use case supports stablecoin issuers managing regulated reserves under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, while the second supports distribution through blockchain-enabled intermediary platforms.
The updates apply to two existing Rule 2a-7 government money market funds. The firm said the changes are intended to expand how the funds can be used across stable reserve management and blockchain-enabled intermediary distribution.
Franklin Templeton said the Western Asset Institutional Treasury Obligations Fund has been updated to align with GENIUS Act reserve requirements and now invests exclusively in US Treasuries with maturities of 93 days or less.
This positions the fund to support stablecoin reserve management as institutional adoption grows, citing a stablecoin market that has surpassed US$310 billion in total supply and projecting growth to around US$2 trillion by 2030.
Western Asset Institutional Treasury Reserves Fund also introduced a new Digital Institutional Share Class designed for distribution through blockchain-enabled platforms. Approved intermediaries can use blockchain technology to record and transfer fund share ownership, enabling faster settlement, 24/7 transactions, and easier integration with digital collateral and cash management systems.
Stay updated on crypto and AI by following our socials
