Major asset manager Franklin Templeton has updated two of its institutional money market funds, officially incorporating stablecoin reserves and on-chain cash functionalities. The move aligns with the GENIUS Act framework, signaling growing institutional readiness to integrate blockchain-based financial infrastructure.

This development marks a significant shift—traditional finance players are no longer waiting on the sidelines. By embedding on-chain cash capabilities into established money market funds, Franklin Templeton is essentially bridging the gap between conventional asset management and decentralized finance infrastructure.

The timing matters. As regulatory clarity improves around stablecoins and digital asset frameworks, institutions are accelerating their Web3 integration strategies. This isn't just about adoption; it's about legitimizing blockchain-based financial instruments within institutional portfolios.

Such moves could ripple across the industry. When a heavyweight like Franklin Templeton validates stablecoin infrastructure at scale, other asset managers face mounting pressure to follow suit—or risk missing the digital finance wave.