Franklin Templeton Allows Exchange of Shares on Blockchain for U.S. Government Money Fund
Franklin Templeton, a leading asset manager, has made a groundbreaking announcement that will revolutionize the way customers exchange shares of its Nasdaq-listed OnChain U.S. Government Money Fund (FOBXX). In a move that combines traditional finance with cutting-edge technology, holders of the BENJI token can now transfer shares directly with each other on a public blockchain.
The FOBXX fund, which was launched in 2021, offers investors exposure to American government securities, cash, and repurchase agreements. Originally operating on the Stellar blockchain, it transitioned to Polygon last year, the blockchain behind the popular cryptocurrency MATIC.
Each BENJI token represents one share of the fund, with the goal of creating efficiencies within traditional financial assets by streamlining the process of buying and selling shares. FOBXX is the first U.S.-registered fund to utilize blockchain technology for processing transactions and recording share ownership, managing $360 million in assets under management.
Roger Bayston, head of digital assets at Franklin Templeton, expressed optimism about the future of blockchain technology in the financial industry, stating, “Eventually, we hope for assets built on blockchain rails, such as the Franklin OnChain U.S. Government Money Fund, to work seamlessly with the rest of the digital asset ecosystem.”
This move by Franklin Templeton follows a trend of major Wall Street firms entering the world of tokenized assets, with BlackRock recently launching its first tokenized asset fund, BUIDL, on the Ethereum blockchain. CEO Jenny Johnson has previously highlighted the potential of blockchain technology to create new investment opportunities.
In related news, the Securities and Exchange Commission (SEC) has extended its evaluation period for an Ethereum spot ETF proposal from Franklin Templeton and investment giant Grayscale. While approval of such a product could boost the value of Ethereum, the likelihood of it being approved has diminished since the initial excitement surrounding Bitcoin spot ETF launches.
As Franklin Templeton continues to innovate in the digital asset space, the financial industry is poised for further advancements in blockchain technology and tokenized assets.
