Franklin Templeton pitches BENJI as onchain rate and collateral in Pendle talk
In brief
- Franklin Templeton framed BENJI as an onchain rate and collateral in a Pendle discussion on X.
- Each BENJI token equals one fund share; the fund targets a stable $1.00 NAV.
- BENJI assets across all versions reportedly exceed $2 billion, spanning 11 supported blockchains.
- An August 12 SEC letter permits BENJI cash-management and securities-lending collateral use under specific conditions, per Crypto Briefing.
What BENJI actually is
The main product behind BENJI is the Franklin OnChain US Government Money Fund (ticker FOBXX). It doesn't rely on a transfer agent's private database to track ownership. The records sit on public blockchains instead, which Crypto Briefing said allows real-time tracking of ownership and faster transaction processing.
There's no wrapper in the middle.
Put simply, the shares themselves are the tokens. There is no wrapper sitting between the investor and the fund.
Growth across chains
The US version of BENJI launched on the Stellar network in April 2021. It reportedly held between $667 million and $687 million in onchain assets as of late 2026, and Franklin Templeton has since expanded the platform to support 11 blockchains. A Singapore-domiciled variant, sgBENJI, reportedly holds about $231 million on its own. Across all versions, total assets reportedly exceed $2 billion.
In October 2026, the firm issued $150 million of sgBENJI tokens on the XRP Ledger, according to Crypto Briefing. That came through two $75 million subscriptions (each producing roughly 72.18 million shares), and the holdings sat in a single wallet.
The SEC letter and its limits
On August 12, 2026, the SEC issued a no-action letter allowing Franklin Templeton's registered funds and ETFs to use BENJI shares for cash management and as securities-lending collateral, under specific conditions, Crypto Briefing reported. The outlet noted that the relief's scope is narrower than a full regulatory framework.
That's the backdrop for the defi conversation. Discussions about BENJI and defi have focused on using the tokenized shares in yield strategies, mainly for institutional and qualified investors, and Crypto Briefing said broad retail access isn't expected in the near term.
Chetan Karkhanis, Senior VP at Franklin Templeton's FIRST group for Asia Pacific, has separately discussed BENJI's origins and features in an interview.
Frequently asked questions
What is Franklin Templeton's BENJI?
BENJI is the token for Franklin Templeton's money market funds, and each token equals one fund share. The main product behind it is the Franklin OnChain US Government Money Fund (FOBXX). Ownership records are kept on public blockchains instead of in a transfer agent's private database.
What did the SEC's August 12, 2026 no-action letter allow?
According to Crypto Briefing, the letter lets Franklin Templeton's registered funds and ETFs use BENJI shares for cash management and as securities-lending collateral, under specific conditions. Crypto Briefing noted that this is narrower than a full regulatory framework.
Can retail investors use BENJI in DeFi yield strategies?
Discussions about BENJI and DeFi have centered on yield strategies aimed mainly at institutional and qualified investors. Crypto Briefing said broad retail access isn't expected in the near term.
