【The giant managing $1.79 trillion heads to the SEC for a pass to the blockchain 💥🚀】
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An asset management giant with $1.79 trillion under management. It quietly met with the SEC on October 9. The topic was the crypto task force. It didn’t talk about whether $BTC would rise or fall. It talked about how to move its own funds onto the blockchain. 💼
Franklin Templeton wants to make a move with money market funds and ETFs. Investors could use a single trading pair to swap for tokenized shares—shares of NMS stocks listed on exchanges. The issue is pricing. Section 22(d) of the Investment Company Act of 1940 sets pricing rules. To get an exemption, it first has to find a way around those rules. 🧾
On September 17, the SEC granted an innovation exemption to eligible on-chain trading venues and market makers. The conditions include a cap on trading volume. Shareholder rights must also be equivalent, and contracts must be publicly auditable. If a stock is halted, trading on-chain must halt too. In my view, this is a small opening for tokenized stocks. ⛓️
This company didn’t just come up with the idea overnight. It launched FOBXX, an on-chain money market fund, back in 2021. Each BENJI token represents one share of the fund. Five years on, it wants to extend this approach to ETFs. On August 12, the SEC also issued a no-action letter regarding custody. 🏦
$1.79 trillion. That was its assets under management as of September 30. If this pool really opens up, the scale of the capital involved will be beyond anything retail investors can match. In my view, this is far more important than launching yet another ETF. It changes how fund companies sell products—and what can go on-chain beyond $BTC . 📈
Don’t celebrate too soon. Buying and selling funds on-chain raises new questions about pricing, fees, and settlement. It’s also still unclear whether market makers will be allowed to charge fees. Whether the pool will need to register as an investment company is another open question. The SEC will have to answer these one by one. I’m not watching today’s market action; I’m watching how far this license can go. ⚖️
📌 The $1.79 trillion giant isn’t asking for yet another ETF. It wants permission to sell funds on-chain.
If funds really move onto the blockchain, whose livelihood do you think will be disrupted first?
Join Mr. X’s fan group chat on the homepage 🔥
An asset management giant with $1.79 trillion under management. It quietly met with the SEC on October 9. The topic was the crypto task force. It didn’t talk about whether $BTC would rise or fall. It talked about how to move its own funds onto the blockchain. 💼
Franklin Templeton wants to make a move with money market funds and ETFs. Investors could use a single trading pair to swap for tokenized shares—shares of NMS stocks listed on exchanges. The issue is pricing. Section 22(d) of the Investment Company Act of 1940 sets pricing rules. To get an exemption, it first has to find a way around those rules. 🧾
On September 17, the SEC granted an innovation exemption to eligible on-chain trading venues and market makers. The conditions include a cap on trading volume. Shareholder rights must also be equivalent, and contracts must be publicly auditable. If a stock is halted, trading on-chain must halt too. In my view, this is a small opening for tokenized stocks. ⛓️
This company didn’t just come up with the idea overnight. It launched FOBXX, an on-chain money market fund, back in 2021. Each BENJI token represents one share of the fund. Five years on, it wants to extend this approach to ETFs. On August 12, the SEC also issued a no-action letter regarding custody. 🏦
$1.79 trillion. That was its assets under management as of September 30. If this pool really opens up, the scale of the capital involved will be beyond anything retail investors can match. In my view, this is far more important than launching yet another ETF. It changes how fund companies sell products—and what can go on-chain beyond $BTC . 📈
Don’t celebrate too soon. Buying and selling funds on-chain raises new questions about pricing, fees, and settlement. It’s also still unclear whether market makers will be allowed to charge fees. Whether the pool will need to register as an investment company is another open question. The SEC will have to answer these one by one. I’m not watching today’s market action; I’m watching how far this license can go. ⚖️
📌 The $1.79 trillion giant isn’t asking for yet another ETF. It wants permission to sell funds on-chain.
If funds really move onto the blockchain, whose livelihood do you think will be disrupted first?