Franklin Templeton Tokenizes US Funds on Polygon, Stellar

Franklin Templeton has launched shares of its Franklin OnChain United States Government Money Fund (FOBXX) on the blockchain.

Franklin Templeton, a leading investment management organization has made the announcement that shares of the Franklin OnChain United States Government Money Fund (FOBXX) are now available on the blockchain.

Franklin Templeton Ties Shares To BENJI Token

The company has permitted peer-to-peer transactions for tokenized shares in the FOBXX fund on the public blockchain. The BENJI token, a registered asset on both the Polygon and Stellar blockchains, is equivalent to one share of the fund.

As a result, investors can obtain access to the fund by downloading the Benji Investments app from either the Google Play Store or the Apple App Store.

The transfer agent of the Fund will continue to be responsible for maintaining the official record of share ownership by utilizing a proprietary integrated system that makes use of blockchain technology for various transactional activities.

The asset management company 21.co produced information indicating that Franklin Templeton holds a 32% market share. As a result, the investment management company has a significant advantage over the other firms operating in the tokenized U.S. Treasury market.

The fact that there are more than $360 million in assets under management (AUM) is more evidence that this prediction is accurate. Over time, Franklin Templeton intends to run the Franklin OnChain U.S. Government Money Fund in conjunction with the other components of the digital asset ecosystem.

The company intends to direct the majority of its total investments into government securities and other instruments of a similar nature. Ultimately, the goal is to maintain the share price at $1.

BlackRock’s new BUIDL fund, tokenized on Ethereum in partnership with Securitize, directly competes with the Franklin Templeton Fund. This is an important fact to keep in mind.

Franklin Templeton To Compete With BlackRock

For the first time, the investment giant BlackRock ventured into the tokenization niche with the launch of its BUIDL Fund. To participate in the fund, external investors are required to make an investment of at least $100,000.

Although its assets under management (AUM) are $304 million, which is slightly lower than Franklin Templeton’s, BUIDL has gained almost 25% of the market within the first month after its introduction.

The level of competition between BlackRock and Franklin Templeton may become more intense depending on the proportion of market share that each of these investment businesses is able to seize.

Shortly after the United States Securities and Exchange Commission gave its approval for the offering, both investment management companies became spot Bitcoin ETF issuers.

They are also attempting to get the Commission’s approval for a potential spot Ethereum exchange-traded fund.