Franklin Templeton tokenizes $380 million US government money fund on Polygon, Stellar

Franklin Templeton has tokenized a $380 million treasuries fund on the Polygon and Stellar blockchains to enable peer-to-peer (P2P) transfers without intermediaries.

The company has launched the Franklin OnChain United States Government Money Fund (FOBXX), offering shares as BENJI tokens. Each token represents a share of the FOBXX and is tradable on the public Polygon and Stellar blockchains.

This innovation aims to simplify transactions and expand access, allowing investors to manage their assets more flexibly through direct exchanges.

Franklin Templeton’s integration of blockchain technology into its financial operations aims to enhance the liquidity and efficiency of asset management. The firm is responding to a growing demand among financial institutions to meld traditional financial structures with modern technology solutions.

The tokenization of government securities and other assets marks a significant advancement in digital asset management, offering greater transparency, security, and efficiency.

BlackRock’s BUIDL

The development positions the investment giant to compete directly with BlackRock’s tokenization efforts. The asset manager recently introduced its BUIDL fund on Ethereum in partnership with Securitize.

The fund primarily focuses on tokenizing US Treasuries, aiming to offer investors a new avenue for secure and efficient investment in government-backed securities through blockchain technology. By leveraging the Ethereum platform, the BUIDL fund ensures robust security features and broad compatibility with various digital wallets and trading platforms.

The introduction of the BUIDL fund into the market has quickly attracted attention from investors seeking innovative ways to diversify their portfolios and manage their assets with enhanced transparency and reduced transaction times.

Although the asset manager has gained attention rapidly, Franklin Templeton maintains a leading position with a 32% market share in the tokenized US Treasuries sector.