Franklin Templeton Upgrades Institutional Fund: Embracing the On-Chain Stablecoin Era

2026-01-13 16:34:43

【BlockBeats】Franklin Templeton has just announced a significant move: migrating two of its institutional-grade money market funds onto the blockchain. The underlying logic is quite clear—allowing traditional financial institutions to utilize familiar cash management tools in the new arenas of tokenized finance and stablecoins.

Each fund has its own focus. One of them (Western Asset Institutional Treasury Obligations Fund) has undergone a compliance upgrade, now holding only US Treasury securities with maturities of no more than 93 days, fully meeting the requirements of the US GENIUS Act for stablecoin reserve assets. In other words, this fund can directly serve as a backing asset for compliant stablecoins.

The other fund (Western Asset Institutional Treasury Reserves Fund) is more aggressive: it has launched a new digital share class, allowing approved financial intermediaries to record and transfer fund ownership directly on the blockchain. What does this mean? Institutional investors can circulate fund shares on-chain, improving efficiency and flexibility.

Franklin Templeton’s move is essentially paving the way: helping institutional clients gradually adopt on-chain infrastructure without fully betting on native crypto products from the start. This approach aligns with recent initiatives by major banks like JPMorgan, which have launched tokenized money market products on Ethereum—highlighting that the integration of traditional finance and blockchain is not an either/or scenario but a gradual infiltration.

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MevShadowranger

· 6h ago

The traditional financial giants have finally lost patience, signaling an official entry... 93-day government-backed stablecoin, a compliant shell that’s executed flawlessly. Honestly, they just want to get a piece of the on-chain cake.

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ChainSpy

· 6h ago

Damn, traditional financial giants are really starting to play for real this time. This isn't just testing the waters; they're jumping in directly. --- 93 days US Treasury bonds as reserve for stablecoins? That compliance approach is truly brilliant. Finally, it's not just air. --- Franklin D. Roosevelt's move is very clever, directly bringing the cash management system onto the blockchain. Traditional institutions won't be able to sit still. --- Wow, stablecoins finally have real backing with actual gold and silver. This is the right way. --- Two funds with differentiated strategies... Do you understand what a professional institution is? --- Retail investors are about to get educated again. With the official troops entering the market, what's left to copy? --- US Treasuries + blockchain, this combination suddenly doesn't seem so magical anymore. --- The era of compliant stablecoins has arrived. How will those bunch of scam coins survive?

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NeonCollector

· 6h ago

Traditional financial giants are also starting to play with on-chain stablecoins. It seems this wave is really coming. Franklin D. Roosevelt's move was quite clever, directly backing with government bonds, ensuring compliance. Wait, does this mean stablecoins are about to be institutionalized? It feels like a good thing but also a bit subtle. Using US Treasury bonds as reserve assets... It feels like stablecoins are getting closer to reality.

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CryptoTarotReader

· 6h ago

Traditional financial giants are finally taking it seriously. This time, it's not just small-scale trading... After tokenizing US Treasury bonds to back stablecoins, the sense of compliance is becoming stronger and stronger.

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WagmiWarrior

· 6h ago

Oh no, traditional giants are also starting to play with on-chain stablecoins. This time, it's serious. Wait, are they planning to tokenize US debt? Feels like the US is hinting at something... The move to bring Franklin D. Roosevelt onto the chain feels like a wake-up call for the entire traditional finance industry. 93 days US debt lock-up—could this be the idea behind the GENIUS Act? Pretty regulated. Suddenly realizing that the future of stablecoins might really be here, no longer just a crypto circle fantasy.

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