Franklin Templeton, a global investment managing organization, announced on Wednesday that its Franklin OnChain U.S. Government Money Fund (FOBXX) is now supported on the Polygon blockchain. This move aims to provide investors with transparent and secure access to financial systems using public blockchain technology for processing transactions and recording share ownership.
.@FTI_US is now #onPolygon 🏦— Polygon (Labs) (@0xPolygonLabs) April 26, 2023
Franklin OnChain U.S. Government Money Fund, the first U.S.-registered mutual fund run on blockchain, is now on @0xPolygon.
🌎👉🏽 bringing transparent, interoperable & secure democratized access to financial instruments 💫
The Fund aims to offer a stable $1 share price for investors by investing at least 99.5% of its assets in government securities and others. Each share of the Fund is represented by one BENJI token, which is available in digital wallets of the Benji Investment Application.
This development makes the Fund the first U.S. registered mutual fund to use a blockchain-integrated system to record and maintain share ownership. Franklin Templeton aims to benefit Fund shareholders by focusing on enhanced security, reduced charges, and faster transactions.
According to Roger Bayston, the Head of Digital Assets at Franklin Templeton, this move enables the Fund to be further compatible with the rest of the digital ecosystem, specifically through an Ethereum-based blockchain. This furthers their distribution reach through a Layer 2 (L2) blockchain that has a proven track record.
Polygon Labs’ Global Head of Institutional Capital, Colin Butler, expressed his excitement about this development, noting that Franklin Templeton is at the forefront of bringing secure and transparent access and interoperability supplied with Polygon. He believes that tokenized assets will positively impact the global financial system.
The Polygon blockchain ecosystem offers DeFi, NFTs, and enterprise adoption involving its sidechain, sovereign blockchains, Layer 2, and Ethereum scalability solutions. This blockchain gives access to a $260 billion market, which is nearly equal to Ethereum-based (ERC-20) assets.
Overall, the launch of the Fund on the Polygon blockchain marks a significant milestone in the adoption of blockchain technology in the financial industry. The move demonstrates the growing recognition of the potential of blockchain technology to provide secure, transparent, and efficient financial services.
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