Franklin Templeton has adapted two Western Asset money market funds to serve the emerging tokenized finance market, positioning them for use in regulated stablecoin reserves and blockchain-enabled distribution platforms. The Western Asset Institutional Treasury Obligations Fund (LUIXX) now invests exclusively in U.S. Treasuries with maturities of 93 days or less and reverse repo, aligning with reserve requirements under the GENIUS Act, the federal stablecoin framework enacted in July 2025. The changes position the fund to support stablecoin reserve management.
Separately, the Western Asset Institutional Treasury Reserves Fund (DIGXX) introduced a Digital Institutional Share Class designed for distribution through blockchain intermediary platforms. The new share class enables approved intermediaries to use blockchain technology for recording and transferring fund ownership, providing faster settlement and round the clock transactions while remaining an SEC-registered money market fund.
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