Franklin Templeton Restructures Money Market Funds for Stablecoin Reserves and Blockchain Integration
Franklin Templeton has taken a significant step toward bridging traditional finance with blockchain technology by restructuring two institutional money market funds. The Western Asset Institutional Treasury Obligations Fund (LUIXX) and the Western Asset Institutional Treasury Reserves Fund (DIGXX) have been updated to support stablecoin reserves and on-chain fund settlement.
LUIXX now complies with the GENIUS Act of 2025, holding short-term U.S. Treasuries with maturities under 93 days to meet stablecoin reserve requirements. This positions the fund as a potential reserve vehicle for regulated stablecoin issuers under SEC oversight.
DIGXX introduces a digital on-chain share class, marking another milestone in the convergence of institutional finance and blockchain infrastructure. These changes reflect growing institutional confidence in blockchain-based financial solutions.