Franklin OnChain U.S. Government Money Fund (FOBXX) to use Stellar blockchain

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Press Release

Franklin Templeton Announces the Franklin OnChain U.S. Government Money Fund Surpasses $270 Million in Assets Under Management​

April 24, 2023

First U.S.-registered mutual fund to process transactions and record share ownership on Stellar blockchain

San Mateo, CA, April 24, 2023Franklin Templeton today announces the Franklin OnChain U.S. Government Money Fund (FOBXX) (the “Fund”) has surpassed $270 million in assets under management (AUM) as of March 31, 2021. The Fund’s transfer agent maintains the official record of share ownership via a proprietary blockchain-integrated system that currently utilizes the Stellar blockchain network for transaction activity. The Fund is the first U.S.-registered fund to use a public blockchain to process transactions and record share ownership, and is available via the Benji Investments app.

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“We believe that blockchain technologies have the potential to reshape the investment management industry by providing greater transparency and lower operational costs for traditional financial products. Blockchains like Stellar’s are important to the investment process of the future, and assets built on blockchain rails, like the Franklin OnChain U.S. Government Money Fund, will eventually be interoperable with the rest of the digital asset ecosystem,” said Roger Bayston, Head of Digital Assets at Franklin Templeton.

The Fund reflects a meaningful integration between blockchain technology and traditional financial institutions, demonstrating the potential for increased interoperability in the financial system. This innovative investment vehicle motivated the Stellar Development Foundation to further diversify its treasury by making a multi-million dollar investment into the Fund.

“Stellar is built and optimized for asset tokenization, and the Franklin OnChain U.S. Government Money Fund exemplifies the blockchain’s usability,” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. “Stellar is evolving traditional financial products and processes, making markets more accessible, and empowering more people.”

Franklin OnChain U.S. Government Money Fund offers a competitive yield. The Fund is a regulated 1940 act fund that invests at least 99.5% of its total assets in government securities, cash and repurchase agreements collateralized fully by government securities or cash. The Fund’s investment goal is to provide investors with as high a level of current income as is consistent with the preservation of shareholders’ capital and liquidity and aims to maintain a stable $1.00 share price.

One share of the Franklin OnChain U.S. Government Money Fund is represented by one BENJI token. Token holders can gain exposure to the fund in digital wallets through the Benji Investments app, available in mobile app stores. Stellar Development Foundation continues to recognize the functions and potential applications for these tokens in the digital ecosystem.

Stellar Development Foundation is a non-profit organization founded in 2014 to support the development and growth of the open-source Stellar blockchain network. The Foundation helps maintain Stellar’s code base, supports the technical business communities around Stellar, and is a speaking partner to regulators and institutions.


I remember when Coinbase let me watch a short video and answer a few multiple choice questions and I "earned" $10 worth of Stellar (XLM). Ended up selling it long ago.

Anyway, Stellar is actually somewhat different from most crypto as it's blockchain works on a Proof of Agreement consensus system. It's interesting to me to see some real world use cases developing for crypto systems.
 
Franklin Templeton, with about $1.4 trillion assets under management, said its OnChain U.S. Government Money Market Fund (FOBXX) is now supported on Ethereum via layer 2 blockchain Polygon.
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The fund is the first U.S. registered mutual fund to use a public blockchain to process transactions and record share ownership, the investment firm claimed in the press release. On Monday, the Stellar Network announced the fund is available on its network. Stellar has a $2.5 billion market capitalization and Polygon's is over $9.5 billion.
...


Franklin Templeton Money Market Fund Launches on Polygon Blockchain


Franklin OnChain U.S. Government Money Fund, the first U.S.-registered mutual fund run on blockchain, is now supported on Ethereum via Polygon

Franklin Templeton today announces that the Franklin OnChain U.S. Government Money Fund (FOBXX) (the “Fund”), the first U.S.-registered mutual fund to use a public blockchain to process transactions and record share ownership, is now supported on the Polygon blockchain.

Franklin Templeton continues to see operational efficiencies through use of a blockchain-integrated system, including increased security, faster transaction processing and reduced costs, benefiting Fund shareholders. The Fund’s transfer agent maintains the official record of share ownership via a proprietary blockchain-integrated system that utilizes blockchain technology for transaction activity.

“Extending the reach of the Franklin OnChain U.S. Government Money Fund to Polygon enables the Fund to be further compatible with the rest of the digital ecosystem, specifically through an Ethereum-based blockchain. This furthers our distribution reach through a Layer 2 (L2) blockchain that has a proven track record,” said Roger Bayston, Head of Digital Assets at Franklin Templeton.

Tapping into the scope and breadth of the Ethereum ecosystem opens up a world of possibilities for investors. The Fund offers a competitive yield and is a regulated 1940 Act fund that invests at least 99.5 percent of its total assets in government securities, cash and repurchase agreements collateralized fully by government securities or cash. The Fund’s investment goal is to provide investors with as high a level of current income as is consistent with the preservation of shareholders’ capital and liquidity and aims to maintain a stable $1.00 share price.

One share of the Franklin OnChain U.S. Government Money Fund is represented by one BENJI token. Token holders can gain exposure to the Fund in digital wallets through the Benji Investments app, available in mobile app stores.

“It’s amazing to have a legacy institution like Franklin Templeton bringing transparency, interoperability, and secure, democratized access to their financial instruments, all things afforded with Polygon,” said Colin Butler, Global Head of Institutional Capital at Polygon Labs. “When we take a step back and look at these things less as blockchain products and more as benefits created by utilizing blockchain rails, we start to see the ‘why.’ Tokenized assets are going to positively rewire the global financial system, and Franklin Templeton is at the forefront of this movement.”

“The Polygon blockchain ecosystem spans many L2, sidechains, and sovereign blockchains and our suite of Ethereum scalability solutions has seen significant adoption across DeFi, NFTs, and enterprises,” added Mr. Butler. “The Polygon blockchain also provides access to a $260 billion market — the approximate aggregate value of all ERC-20 (Ethereum-based) assets.”


Very cool.
 
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