Franklin Templeton Launches Tokenized Money Market Fund on Aptos Blockchain

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Author Profile

Share

Copied

Last updated: 

October 2, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Global asset manager Franklin Templeton announced Wednesday that its blockchain-based government money fund is now live on Layer-1 blockchain Aptos.

The Franklin OnChain US Government Money Fund (FOBXX) is the first US-registered fund to use a public blockchain for transaction processing and recording share ownership.

Institutional investors can access the fund through digital wallets on the Benji Investments platform. This platform is Franklin Templeton’s blockchain-integrated record-keeping system. Investors can also choose to hold their wallets on the Aptos network, according to the fund manager.

“We chose the Aptos Network given its unique characteristics which meet our rigorous suitability standards for the Benji platform,” said Roger Bayston, Franklin Templeton’s Digital Assets Head.

He added that the announcement marks a significant milestone in the firm’s journey to “unlock new asset management capabilities through blockchain technology.”

Franklin Templeton Explores Blockchain-Driven Fund Management

Since 2018, Franklin Templeton Digital Assets has been developing blockchain-based solutions. The firm has also been managing node validators and creating diverse investment strategies. It has explored how blockchain can transform fund management. This is evident with its on-chain US Government Money Fund, which uses public blockchains like Stellar, Polygon and Arbitrum for transactions and share ownership recording.

The firm’s investment strategies vary. These include direct investments in cryptocurrencies like Bitcoin through ETFs and funds that tokenize traditional assets like government securities. These approaches cater to a wide range of investors. Some seek high returns in volatile digital currencies, while others prefer the stability of blockchain-enhanced government securities.

Also, its partnership with companies like SBI Holdings, alongside its integration across various blockchain networks and the introduction of ETFs, shows a strategic expansion into the digital asset market.