SEC Gives Franklin Templeton a Green Light on Stellar
The SEC just handed Franklin Templeton a major win. The agency’s Division of Investment Management issued a no-action letter. It lets Franklin’s traditional registered funds invest in its blockchain-based OnChain U.S. Government Money Fund. That fund runs on Stellar and is widely known as BENJI. Regulators rarely move this fast on crypto infrastructure, so the decision matters far beyond one asset manager.
What Actually Changed for Franklin’s Funds
The letter cites Section 17(f) and Rule 17f-2 of the Investment Company Act of 1940. Normally, those rules require strict physical-vault custody standards. Now Franklin’s mutual funds and ETFs can hold BENJI shares without clearing that bar. The SEC accepted that Franklin’s setup offers similar protection to traditional book-entry custody. Its transfer agent controls the private keys and the official shareholder file. Franklin Templeton Investor Services will create and manage the blockchain wallets. Investors gain blockchain speed without losing regulatory oversight.
Why Stellar Sits at the Center of This Story
BENJI launched on Stellar back in 2021. Since then, it has expanded to Ethereum and Solana too. Even so, most of its roughly $726 million in assets still sits on Stellar, according to RWA.xyz. That detail says a lot. Stellar’s low fees and fast settlement made it a natural home for a fund. This kind of fund needs frequent pricing updates and smooth transaction processing. Because this SEC approval leans on BENJI’s technical structure, it also validates Stellar as a credible settlement layer for regulated products.
Institutional Trust Keeps Building on Stellar
This ruling follows a clear pattern. Traditional finance keeps testing Stellar for real products instead of pilot programs. Franklin Templeton didn’t build a side project here. It built a fund that regulated funds can now hold directly. That kind of validation pushes other asset managers to take tokenized products more seriously. It also strengthens the case that Stellar can support institutional-grade infrastructure at scale.
Lumexo Brings This Access to Everyday Traders
Most people can’t buy into a Franklin Templeton fund directly. Still, they can access the same Stellar network powering it. Lumexo gives retail users a non-custodial way to trade. It also offers lending through Blend markets and stablecoins like USDC and EURC. All of it runs on the same infrastructure institutions now trust. As regulators warm up to Stellar-based finance, Lumexo stays positioned as the simple entry point for anyone who wants in.