Franklin Templeton recently announced significant updates to two institutional money market funds managed by Western Asset Management. These changes prepare the funds for the growing sector of tokenized finance by ensuring compliance with new federal standards. The firm retrofitted these investment vehicles to meet the requirements of the GENIUS Act of 2025. This move allows the funds to support stablecoin reserves and blockchain distribution.
The Western Asset Institutional Treasury Obligations Fund now invests strictly in short-term U.S. Treasuries. This strategy aligns with the legal framework for regulated stablecoin reserves in the United States. Meanwhile, the Western Asset Institutional Treasury Reserves Fund launched a new Digital Institutional Share Class. This class enables approved partners to record and transfer ownership using secure blockchain technology. These updates show a commitment to integrating traditional assets with tokenized finance systems.
Strategic Benefits for Institutional Investors
The move to on-chain funds presents many benefits to the current financial institutions. Blockchain integration provides faster settlement times and allows for transactions to occur at any time. It also simplifies how firms manage digital collateral and cash flows. Franklin Templeton aims to make these regulated products more accessible across various digital market infrastructures.
“Traditional funds are already beginning to move on-chain, so rather than question their ability, our focus is to make them more accessible and useful to many. By prioritizing interoperability and flexibility, we’re opening more ways for clients to access and deploy regulated funds across the platforms they rely on, giving investors greater choice in how they put their capital to work,” said Roger Bayston, Head of Digital Assets at Franklin Templeton.
“The Western Asset Liquidity business has long focused on helping clients move forward without choosing between innovation and managing risk,” said Matt Jones, Franklin Templeton’s Head of Institutional Liquidity.
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News Source: Businesswire.com
