The SEC issued a no-action letter permitting Franklin Templeton's traditional registered mutual funds to invest in FOBXX, the firm's blockchain-native money market fund operating on the BENJI platform. This is a significant regulatory green light, as it extends onchain investment exposure to conventional registered fund wrappers that were previously restricted to off-chain instruments.
For Armada's crypto repo desk, this SEC action materially expands the institutional legitimacy of tokenized T-Bills as collateral. FOBXX is already among the largest tokenized money market funds; no-action coverage for registered fund investment broadens the counterparty base that could post BENJI shares as collateral. Legal counsel should confirm whether the no-action letter's scope creates enforceable pledgeability for repo purposes.