As a researcher with a background in finance and blockchain technology, I’m thrilled to see Franklin Templeton taking a bold step forward in tokenizing its US Government Fund on the Polygon and Stellar blockchains. This move represents a significant shift in the investment industry, enabling peer-to-peer transfers of shares in the Franklin OnChain United States Government Money Fund (FOBXX) using the BENJI token.
As a researcher, I’m excited to share that Franklin Templeton has made headway in the blockchain industry with their recent announcement. Specifically, they plan to tokenize their US Government Fund on both the Polygon and Stellar blockchains. This move signifies a major milestone in bringing traditional investment offerings into the world of digital assets.
With tokenization, investors in Franklin OnChain FOBXX can effortlessly transfer the fund’s BENJI tokens among themselves directly, eliminating the need for intermediaries.
Franklin Templeton Embraces Blockchain Technology
Franklin Templeton’s adoption of blockchain technology allows for direct share transfers in its Franklin OnChain United States Government Money Fund (FOBXX) using the BENJI token. Each BENJI token serves as a unit of ownership in the fund and can be traded on Polygon and Stellar networks. Consequently, Franklin Templeton holds a significant market dominance of 32% or $384 million in the tokenized US Treasuries sector, based on data from asset management firm 21co. In a statement, Roger Bayston, Head of Digital Assets at Franklin Templeton, remarked,
As an analyst, I’m thrilled to share that BENJI token holders will soon have the freedom to transfer their tokens amongst themselves. Our ultimate goal is to integrate assets constructed on blockchain foundations, such as the Franklin OnChain U.S. Government Money Fund, effortlessly into the broader digital asset ecosystem.
As a researcher studying the innovation in the financial sector, I’d express it this way: I discovered that Franklin Templeton made history as the initial US-registered investment firm to employ a public blockchain for processing transactions and maintaining share ownership records. At present, the value of assets under management in tokenized government securities amounts to approximately $1.2 billion.
Competing With BlackRock
I’m observing that Franklin Templeton has recently introduced a new initiative, facing intensifying competition, notably from BlackRock’s newly launched BUIDL fund. This collaborative effort with Ethereum to tokenize the fund has already claimed an impressive 25% market share within a month of its debut. With $304 million in assets under management, BlackRock’s BUIDL fund is rapidly eroding Franklin Templeton’s market position.
The rivalry between these two investment behemoths is expected to become more fierce as they strive to claim superiority in the emerging field of tokenized US securities. With Franklin Templeton’s recent tokenization of its US Government Funds, it signifies a forward-thinking approach aimed at boosting interconnectivity within the digital asset marketplace.
Using the Benji token for peer-to-peer transfers, Franklin Templeton aims to expand the fund’s functionality and provide investors with more convenience in handling their assets. This action reaffirms the company’s dedication to employing blockchain technology to create new opportunities and stay responsive to market developments.
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2024-04-26 12:15