February 21, 2024

Investment mogul Franklin Templeton has announced that its Nasdaq-listed OnChain US Government Money Fund is now supported on the Polygon Network.

OnChain U.S. Government Money Fund is the first mutual fund registered in the U.S. to use blockchain to process transactions and record equity.

Greater compatibility with digital ecosystems

Franklin Templeton is one of the world’s largest asset managers, with over $1.4 trillion in assets under management.According to the asset manager, linking its on-chain U.S. government money fund (FOBXX) to polygon The network will make it “further compatible with the rest of the digital ecosystem”. In a press release, the asset manager said it continues to see greater operational efficiencies through the use of blockchain-integrated systems. Benefits include faster transaction speeds, better security, and significantly lower costs. Additionally, the fund’s transfer agent maintains official records of share ownership using a proprietary blockchain-integrated system.

Roger Bayston, director of digital assets at Franklin Templeton, said,

“Extending the reach of the Franklin OnChain U.S. Government Monetary Fund to Polygon enables the fund to be further compatible with the rest of the digital ecosystem, especially through Ethereum-based blockchains. L2) Blockchain further expands our distribution.”

Endless Possibilities for Investors

Access to the Ethereum ecosystem opens up many possibilities for fund investors. The Fund is a 1940 Act regulated fund that provides investors with competitive income investing at least 99.5% of its total assets in cash, government securities and repurchase agreements, all of which are fully collateralized by government securities or cash . The fund seeks to provide investors with high levels of income consistent with protecting shareholders’ capital and liquidity.

Each Franklin OnChain U.S. Government Monetary Fund share is represented by one BENJI token. BENJI token holders will also have access to the app through the Benji Investments App. Colin Butler, Global Head of Institutional Capital at Polygon Labs, said of these developments,

“Having a traditional institution like Franklin Templeton bring transparency, interoperability, and secure, democratized access to its financial instruments, and Polygon provides all of that, it’s fantastic. When these things are seen as the benefits of blockchain products rather than blockchain rails, we start to understand the “why”.Tokenized assets will actively reshape the global financial system, and Franklin Templeton is in this movement frontier.”

He further added that investors will be able to tap into a $260 billion market, saying,

“The Polygon blockchain ecosystem spans many L2, sidechains, and sovereign blockchains, and our suite of Ethereum scalability solutions has seen widespread adoption across DeFi, NFTs, and enterprises. The Polygon blockchain also provides access to 2600 way to the $100 million market — the approximate total value of all ERC-20 (Ethereum-based) assets.”

Other Traditional Financial Firms Using Blockchain

polygon is the entity behind the MATIC cryptocurrency, which is the tenth largest cryptocurrency in the market. It acts as a scaling platform for Ethereum, helping to make it faster and more efficient. Franklin Templeton, on the other hand, has longstanding ties to the crypto space. Stellar, an open-source platform designed to facilitate monetary payments, said the Templeton Fund is also available on its network. Several other traditional financial firms have also adopted blockchain technology in their products. In 2022, Wall Street’s Citadel Securities, Fidelity Digital Assets, Charles Schwab, etc. created the digital asset exchange EDX Markets.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.