Franklin Templeton Tokenizes US Gov Funds On Polygon And Stellar

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As a seasoned investor with a keen interest in the blockchain and digital asset space, I’m thrilled to see Franklin Templeton taking yet another bold step into this emerging market. With their latest announcement of the availability of shares for the Franklin OnChain United States Government Money Fund (FOBXX) on the blockchain, they have once again proven themselves as a trailblazer in the investment management industry.

Franklin Templeton, a leading investment management company, has made public the accessibility of shares for the Franklin OnChain United States Government Money Fund (FOBXX) via the blockchain.

Franklin Templeton Ties Shares To BENJI Token

I’ve observed that peer-to-peer transfers for tokenized shares in the FOBXX fund have been activated on the public blockchain as announced. Each share of this Fund is equivalent to one BENJI token, which is registered on both the Polygon and Stellar blockchains. Consequently, investors can easily access the Fund by using the Benji Investments app, which is available on both Google Play Store and Apple App Store.

Through a secure, proprietary system built on blockchain technology, the Fund’s transfer agent will maintain the authentic records of share ownership.

According to the statistics from 21.co, Franklin Templeton holds approximately three quarters of the market share in the tokenized U.S. Treasuries niche, with a significant lead over other organizations. This dominance is also supported by managing more than $360 million in assets.

Over an extended period, Franklin Templeton intends to manage the Franklin OnChain U.S. Government Money Fund alongside the digital asset sector. The company aims to primarily invest in government securities and relevant financial instruments. Their ultimate objective is to preserve a constant net asset value of $1 per share.

Franklin Templeton To Compete With BlackRock

This Franklin Templeton fund is worth mentioning as it faces stiff competition from BlackRock’s newly launched BUIDL fund. The BUIDL fund, which was tokenized through a partnership with Securitize on Ethereum, represents BlackRock’s initial venture into the tokenization sector. Prospective investors need to commit a minimum investment of $100,000 for participation.

Within a month of its debut, BUIDL has amassed approximately a quarter of the market, despite having assets under management (AUM) of $304 million, which is slightly less than Franklin Templeton’s. The extent to which each firm secures a larger share of the market could intensify competition between BlackRock and Franklin Templeton.

Two investment companies have recently been granted permission by the U.S. SEC to launch Bitcoin ETFs, making them the newest issuers in this sphere. Additionally, they are planning to apply for the SEC’s approval to offer Ethereum ETFs as well.

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2024-04-25 19:56