Franklin Templeton is preparing two institutional money market funds for blockchain integration and stablecoin compliance. The asset manager, ticker BEN, announced updates to funds managed by its Western Asset Management affiliate to support tokenized finance use cases. One change affects the Western Asset Institutional Treasury Obligations Fund, which now invests solely in U.S. Treasuries with maturities under 93 days.

This move aligns the fund with reserve requirements under the GENIUS Act, the proposed federal stablecoin legislation, as institutional demand for compliant digital collateral grows. A second update introduces a Digital Institutional Share Class for the Western Asset Institutional Treasury Reserves Fund. This share class, designated DIGXX, will be distributed through blockchain-enabled intermediaries, allowing for recorded ownership transfers without altering the fund’s status as a traditional SEC-registered product.

According to Roger Bayston, head of digital assets, this modernizes shareholder recordkeeping while maintaining security. The firm aims to facilitate faster settlement and 24/7 transaction capabilities, bridging traditional finance with digital market workflows.