Franklin Templeton announced updates to two of its institutional money market funds to make them available for the emerging tokenized finance and regulated stablecoin markets.

The adjustment involves funds managed by its affiliate Western Asset Management, aiming to help institutional clients use familiar cash management tools within blockchain platforms and stablecoin reserve frameworks.

Among them, the Western Asset Institutional Treasury Obligations Fund has adjusted its investment structure to comply with the stablecoin reserve asset requirements of the U.S. GENIUS Act, currently holding only U.S. Treasury securities with maturities not exceeding 93 days, which can serve as reserve assets for compliant stablecoins.

Another fund, the Western Asset Institutional Treasury Reserves Fund, has launched a brand-new digital institutional share class that allows approved intermediaries to record and transfer fund share ownership through blockchain infrastructure.

Franklin Templeton stated that this move aims to help institutional investors gradually adopt on-chain infrastructure without introducing entirely new crypto-native products. This development also echoes recent moves by major financial institutions like JPMorgan to launch tokenized money market products on Ethereum.