- Franklin Templeton’s fund gives investors access to U.S. treasuries using blockchain technology.
- The Avalanche network ensures low costs and fast transfers for investors in the money fund.
- The new system lets users exchange USDC for shares and make peer-to-peer transfers easily.
Franklin Templeton, a global venture capital firm managing $1.6 trillion in assets, has introduced its OnChain U.S. Government Money Fund (FOBXX) on the Avalanche blockchain. This is the first U.S.-registered mutual fund to use blockchain technology for sales and share ownership. The launch marks a serious step in bringing blockchain into traditional finance.
The $402 million fund is tokenized, with each share represented by a BENJI token. Investors can access these shares through the Benji Investments app, providing an efficient way to invest in U.S. treasuries through blockchain.
Avalanche Integration Improves Access
Franklin Templeton chose the Avalanche network for its low fees and fast processing times. Business owners benefit from quicker access and lower costs. The blockchain integration also enables peer-to-peer share transfers, which are not possible in traditional finance.
Additionally, users can exchange USDC stablecoin for FOBXX shares. This innovation allows for smoother blockchain investments and shows how financial institutions are adopting technology for greater efficiency.
Growth in the Tokenized Treasuries Market
The tokenized U.S. Treasury market is growing rapidly, with total value reaching over $1.92 billion. Ethereum leads the market with more than $1.3 billion in assets, while Stellar and Solana are also emerging as notable players, with $434 million and $48 million, respectively.
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Franklin Templeton’s FOBXX holds a market cap of over $424 million, ranking just behind BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which holds $502 million. The growth of these funds shows the rising interest in tokenizing traditional financial products.
Franklin Templeton Expands Digital Reach
Franklin Templeton has been involved in blockchain since 2018. The company has developed blockchain solutions and acts as a validator on various networks. It also uses data to shape strategies in the digital asset space.
Recently, the firm expanded FOBXX’s reach by launching it on the Ethereum blockchain through Arbitrum, a solution designed to speed up transactions. This further shows Franklin Templeton’s commitment to embracing blockchain technology.
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