The SEC said it will not pursue enforcement action if Franklin Templeton’s funds start investing cash in the asset manager’s own tokenized money market fund. Franklin Templeton received the regulatory nod to invest in its own blockchain-based money-market fund under specific guardrails, without having to adhere to physical custody regulations. The Securities and Exchange Commission (SEC) issued a no-action letter on Wednesday stating it won’t take enforcement action if Franklin Templeton fund managers invest cash in the Franklin OnChain U.S. Government Money Fund, an interest-bearing tokenized fund that invests in US government securities and aims to maintain a stable $1 share price. The SEC will also allow the affiliated transfer agent, Franklin Templeton Investor Services (FTIS), to act as custodian for the tokenized funds and hold their private keys without adhering to existing physical-custody rules. It comes in response to Franklin Templeton’s formal no-action request letter sent earlier on Wednesday. R...
Flying Tulip founder Andre Cronje contends that DeFi protocols have evolved into a new financial paradigm of “onchain finance,” but have sacrificed some of their inherent immutability and decentralization. Most decentralized finance (DeFi) protocols are no longer truly decentralized, according to Andre Cronje, founder of DeFi platform Flying Tulip and creator of Fantom Network. “I don’t think DeFi exists anymore outside of those very small niches,” Cronje told Cointelegraph during Thursday’s Chain Reaction X Spaces show. He argued that “true DeFi” needs to be decentralized, immutable and without an intermediary, adding: “That statement isn’t really true for pretty much any other protocols running today.” Read more
Binance bStocks became the second-largest tokenized stock issuer less than two months after launch, narrowly ahead of Kraken’s xStocks. Binance bStocks have overtaken xStocks to become the second-largest tokenized stock issuer by value less than two months after launch. BStocks reached about $624 million on Aug. 3, surpassing xStocks at roughly $579 million but trailing Ondo Finance at about $927 million, according to Token Terminal data. As of Tuesday, bStocks remained in second place at $610.6 million, narrowly ahead of xStocks at $601.2 million. The issuer landscape has shifted sharply as the tokenized stock market has grown. A year earlier, xStocks led with $40.7 million, followed by Robinhood at $37.2 million, while Ondo held about $65,000. The total value tracked by Token Terminal has since surged from roughly $80 million to about $2.7 billion. Read more