Franklin Templeton Allows P2P Trades of Blockchain Fund

Franklin Templeton, a major asset manager, will enable the exchange of FOBXX, its Nasdaq-listed OnChain U.S. Government Money Fund, with each other.  The development implies that US Government Money Fund participants can tap the platform to swap shares directly.

According to an April 25 statement, the firm noted that BENJI token holders can transfer shares directly with each other on a public blockchain. 

BENJI Token Holders Can Tap P2P Exchange

FOBXX was unveiled in 2021 and introduced investors to cash, American government securities, and repurchase agreements. Previously, it ran on the Stellar blockchain. However, in 2023, it became available on Polygon, a blockchain behind MATIC, the 20th biggest cryptocurrency. 

A single BENJI token represents a single share of the fund. According to the asset  manager, the concept is to ‘generate efficacies within the conventional financial assets.’ Simply put, it entails smoothening the process of purchasing and selling shares.

FOBXX is the first United States-registered fund to utilize a blockchain to run transactions and record the ownership of shares. The assets under management are worth $360M. 

According to Roger Bayston, Franklin Templeton’s head of digital assets, they hope for assets developed on the blockchain, for instance, the Franklin OnChain U.S. Government Money Fund, to function smoothly with the digital asset ecosystem.

Franklin Templeton Joins BlackRock in Embracing Tokenization

Franklin Templeton is not the only leading Wall Street company to join the tokenized assets world. In March, BlackRock unveiled BUILDL, its initial tokenized asset fund on Ethereum. In January, the chief executive officer Jenney Johnson noted that blockchain ‘will open up several interesting kinds of investment opportunities.’ 

The Securities and Exchange Commission (SEC) also bought additional time to assess an Ethereum spot exchange-traded fund (ETF)from Grayscale, an investment behemoth, and Franklin Templeton. This kind of product is considered a crucial means to enhance the second-biggest digital asset’s value. Nevertheless, endorsement prospects have dwindled since the ecstatic days of Bitcoin spot exchange-traded funds unveilings.