Franklin Templeton has amended two Western Asset institutional money market funds to support stablecoin reserves and onchain cash use.
The changes allow the funds to integrate with the emerging US stablecoin framework without launching new crypto-native products.
The funds remain Securities and Exchange Commission registered 2a-7 money market funds under the updated structure.
Franklin Templeton said the amendments enable the funds to serve as regulated, government-backed collateral for payment stablecoins.
The Western Asset Institutional Treasury Obligations Fund has been aligned with GENIUS Act reserve requirements.
The Western Asset Institutional Treasury Reserves Fund has added a blockchain-enabled digital share class for onchain collateral use.
We expect stablecoin reserves to be managed in both tokenised and more traditional form.
Roger Bayston said.
Bayston added that Franklin Templeton aims to manage reserves in the structure preferred by clients, including mutual funds and bespoke portfolios.
The firm said many institutional investors still prefer familiar SEC-registered vehicles when accessing blockchain-based infrastructure.
Other asset managers are pursuing similar strategies as regulated money market funds become backend infrastructure for tokenised dollars.