Renowned asset manager Franklin Templeton announced that the Franklin OnChain U.S. Government Money Fund (FOBXX), the first U.S.-registered mutual fund to employ a public blockchain for transaction processing and share ownership recording, is now supported on Ethereum via layer 2 Polygon network.
The transfer agent of the FOBXX maintains the official record of share ownership using a proprietary blockchain-integrated system that makes use of blockchain technology for transaction activity. Over $270 million worth of assets are now being managed under FOBXX.
The Franklin OnChain U.S. Government Money Fund’s reach being extended to Polygon, according to Roger Bayston, Head of Digital Assets at Franklin Templeton, enables the fund to work better with the rest of the digital ecosystem. Through an Ethereum-based blockchain, this will increase their reach in terms of distribution.
A BENJI token is equivalent to one share of the Franklin OnChain U.S. Government Money Fund. Through the Benji Investments app, which is accessible through mobile app stores, token holders can acquire exposure to the Fund in virtual wallets.
The heritage institution Franklin Templeton will use Polygon to deliver transparency, interoperability, and safe, democratized access to their financial instruments, said Colin Butler, Global Head of Institutional Capital at Polygon Labs. He continued by saying that Franklin Templeton is leading the charge to rewire the global financial system with tokenized assets.
This move by Franklin Templeton is a significant step in the direction of increased adoption of blockchain technology in traditional financial institutions. By using a blockchain-integrated system, the company can offer increased security and transparency to its investors, which is a positive development for the industry.
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