Franklin Templeton Introduces Blockchain-Based Share Exchange for OnChain U.S. Government Money Fund
Franklin Templeton Embraces Blockchain Technology with Launch of Tokenized Fund
In a groundbreaking move, leading asset manager Franklin Templeton has announced plans to revolutionize the exchange of shares with the introduction of its Nasdaq-listed OnChain U.S. Government Money Fund (FOBXX). The company revealed on Thursday that holders of the BENJI token will now have the ability to transfer shares directly with one another on a public blockchain.
Launched in 2021, FOBXX offers exposure to American government securities, cash, and repurchase agreements. Initially operating on the Stellar blockchain, the fund expanded its accessibility last year by integrating with Polygon, the blockchain supporting the 20th largest cryptocurrency, MATIC.
Each BENJI token corresponds to one share of the fund, with Franklin Templeton aiming to streamline the process of buying and selling shares, enhancing efficiencies within traditional financial assets.
FOBXX marks a significant milestone as the first U.S.-registered fund to utilize blockchain technology for transaction processing and share ownership recording, managing an impressive $360 million in assets.
Roger Bayston, head of digital assets at Franklin Templeton, expressed optimism about the future integration of blockchain-based assets like the Franklin OnChain U.S. Government Money Fund with the broader digital asset ecosystem.
This move by Franklin Templeton aligns with a broader trend among major Wall Street firms. Just last month, BlackRock unveiled its inaugural tokenized asset fund, BUIDL, built on the Ethereum blockchain.
Reflecting on the potential of blockchain technology, company CEO Jenny Johnson emphasized its capacity to unlock diverse investment opportunities.
However, the Securities and Exchange Commission (SEC) has extended its evaluation period for an Ethereum spot ETF proposal from Franklin Templeton and investment behemoth Grayscale. While the approval of such a product was once seen as pivotal for bolstering the value of the second-largest digital asset, the outlook has dimmed since the exuberant days of Bitcoin spot ETF launches.
Franklin Templeton’s foray into tokenized assets signals a new era in the financial industry, embracing the power of blockchain technology to transform traditional asset management practices.
