Franklin Templeton Debuts Tokenized Money Market Fund

On Wednesday, the blockchain-based government money fund managed by global asset manager Franklin Templeton went online on Layer-1 blockchain Aptos.

The fund was operational on open blockchains such as Arbitrum, Polygon, and Stellar.

The first fund registered in the United States to execute transactions and record share ownership on a public blockchain is the Franklin OnChain US Government Money Fund (FOBXX).

The fund is accessible to institutional investors via the Benji Investments platform’s digital wallets. This platform is the blockchain-enabled record-keeping system from Franklin Templeton. The fund manager claims that investors also have the option to keep their wallets on the Aptos network.

“The Aptos Network was selected due to its distinct features that satisfy our exacting requirements for the Benji platform,” stated Roger Bayston, Head of Digital Assets at Franklin Templeton.

In his words, the company’s efforts to “unlock new asset management capabilities through blockchain technology” have reached a significant turning point with this announcement.

Franklin Templeton Investigates Fund Management Driven by Blockchain

Franklin Templeton Digital Assets has been creating blockchain-based products since 2018. The company has also been developing various investing methods and managing node validators. How blockchain can change money management has been investigated. This is demonstrated by its on-chain US Government Money Fund, which records shared ownership and conducts transactions using public blockchains like Stellar, Polygon, and Arbitrum.

The company uses several investment strategies. These include funds that tokenize conventional assets like government securities and direct investments in cryptocurrencies like Bitcoin through exchange-traded funds (ETFs). These strategies serve a broad spectrum of investors. While some favor the safety of government securities bolstered by blockchain technology, others chase huge returns in volatile digital currencies.

Its collaboration with businesses such as SBI Holdings, in addition to its integration into multiple blockchain networks and the launch of ETFs, indicates a calculated move into the digital asset space.