Franklin Templeton has tokenized a $380 million treasury fund on the Polygon and Stellar blockchains to enable peer-to-peer (P2P) transfers without intermediaries.
The company has launched the Franklin OnChain United States Government Money Fund (FOBXX), which offers shares as BENJI tokens. Each token represents a portion of the FOBXX and is tradable on the public Polygon and Stellar blockchains.
This innovation aims to simplify transactions and expand access, allowing investors to manage their assets more flexibly through direct exchanges.
Franklin Templeton’s integration of blockchain technology into its financial operations aims to improve the liquidity and efficiency of asset management. The company responds to the growing demand from financial institutions to combine traditional financial structures with modern technological solutions.
The tokenization of government securities and other assets marks a significant advancement in digital asset management, offering greater transparency, security and efficiency.
BUIDL by BlackRock
The development positions the investment giant to compete directly with BlackRock’s tokenization efforts. The asset manager recently launched its BUIDL fund on Ethereum in partnership with Securitize.
The fund focuses primarily on tokenizing U.S. Treasury securities, with the goal of providing investors with a new avenue for safe and efficient investments in government-backed securities via blockchain technology. By leveraging the Ethereum platform, the BUIDL fund ensures robust security features and broad compatibility with various digital wallets and trading platforms.
The introduction of the BUIDL fund to the market has quickly attracted the attention of investors looking for innovative ways to diversify their portfolios and manage their assets with improved transparency and shorter transaction times.
Although the asset manager has quickly attracted attention, Franklin Templeton maintains a leading position with a 32% market share in the tokenized US Treasuries sector.