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, 2023 – Franklin 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.
“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.