Franklin Templeton, managing $1.6 trillion in assets, has updated two institutional money market funds to enhance compatibility with stablecoins and blockchain systems. Managed by Western Asset, these SEC-registered Rule 2a-7 funds maintain strict liquidity and risk standards. The Western Asset Institutional Treasury Obligations Fund now supports stablecoin issuers by investing solely in U.S. Treasuries with maturities of 93 days or less, aligning with the GENIUS Act. Meanwhile, the Western Asset Institutional Treasury Reserves Fund introduces a digital share class for blockchain-based distribution, though neither fund is tokenized. Roger Bayston, Franklin Templeton's head of digital assets, highlighted the shift towards integrating traditional liquidity products with digital finance. The updates allow institutions to operate on-chain while adhering to traditional market standards. This move is part of a broader trend among asset managers to incorporate crypto infrastructure, exemplified by Wyoming's recent launch of the FRNT stablecoin, managed by Franklin Templeton.