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A new functionality has been introduced by Franklin Templeton, a leading asset manager, enabling customers to exchange shares of its Nasdaq-listed OnChain U.S. Government Money Fund (FOBXX) directly among themselves. In a recent announcement on Thursday, the company disclosed that BENJI token holders now have the capability to swap shares on a public blockchain.
Established in 2021, FOBXX provides exposure to American government securities, cash, and repurchase agreements. While initially functioning on the Stellar blockchain, it shifted last year to Polygon, the underlying technology of the 20th largest cryptocurrency, MATIC.
Each BENJI token is equivalent to a single share of the fund. The main objective, according to the asset manager, is to improve efficiencies within traditional financial assets, streamlining the share transaction process.
FOBXX is distinguished as the pioneering U.S.-registered fund utilizing blockchain for transaction processing and share ownership recording, overseeing assets valued at $360 million.
Roger Bayston, the head of digital assets at Franklin Templeton, shared his vision, stating, “Our aim is for assets like the Franklin OnChain U.S. Government Money Fund, constructed on blockchain infrastructure, to seamlessly integrate with the broader digital asset landscape.”
Franklin Templeton joins other prominent Wall Street entities in the domain of tokenized assets, with BlackRock recently launching its first tokenized asset fund, BUIDL, operating on the Ethereum network.
CEO Jenny Johnson emphasized in January the transformative potential of blockchain technology, highlighting its ability to unlock various investment opportunities.
Recently, the Securities and Exchange Commission (SEC) extended its assessment period for an Ethereum spot ETF proposal submitted by Franklin Templeton and investment giant Grayscale. While the approval of such a product is considered vital for boosting the value of the second-largest digital asset, the likelihood of approval has decreased compared to the enthusiastic phase of Bitcoin spot ETF introductions.
Edited by Ryan Ozawa.