Franklin Templeton Launches On-Chain Money Fund, A Stablecoin Alternative, on Polygon Network with $1.4T AUM

The Defiant | Samuel Haig | Apr 28, 2023

Image: Unsplash/Andre Taissin

Franklin Templeton, the subsidiary of a global investment firm with $1.4T in assets under management, launched its on-chain money fund, a stablecoin alternative, on the Polygon network on Wednesday.

• Franklin Templeton has launched the Franklin OnChain U.S. Government Money Fund (FOBXX), a U.S.-registered mutual fund that uses the Stellar blockchain for transactions and share ownership recording. The fund aims to provide dividends while maintaining a stable $1 share price by investing primarily in government securities, cash, or repurchase agreements. Roger Bayston, the company's head of digital assets, emphasized that this marks their first integration into the Ethereum ecosystem, as the fund's compatibility with the digital ecosystem is extended through the Ethereum-based Polygon network.
• The news is the latest sign of increasing institutional interest in Ethereum and its ecosystem following its transition to Proof of Stake consensus last year. Last month’s Shapella upgrades, which activated Staked Ether withdrawals for the first time, have further stoked institutional appetite for Ethereum.
  • Tom Wan, a researcher at crypto ETP provider, 21Shares, tweeted that there were $1B worth of staked Ether inflows over the previous week. “Flow is mainly driven by institutional staking providers,” he said.

See: 

BoE Speech: 4 Areas at the Intersection of Payment Innovation, Tokenization, and Money

Fund Tokenization: Fractional Issuance, Streamlined Redemption, and Servicing Benefits

Colin Butler, head of institutional capital at Polygon Lab:

It’s amazing to have a legacy institution like Franklin Templeton bringing transparency, interoperability, and secure, democratized access to their financial instruments. When we take a step back and look at these things less as blockchain products and more as benefits created by utilizing blockchain rails, we start to see the ‘why.

Continue to the full article --> here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Buying a Canadian MSB and Reviewing FINTRAC RPAA and Financial Due Diligence

Why MSCI Is Removing Strategy From Its Indexes

How Is Crypto Market Cap Calculated? What a Change in the Top Coins Really Tells You

What Happens When AI Agents Start Trading Together?

Canada’s VC Totals Are Reliant On Mega Deals

Why Canada Is Making It Cheaper to Leave Your Bank

CSA Tokenization Report Shows Where Canada May Scale First

Creative Ways to Boost Team Morale

Webull Adds Free Data as Canadian Brokers Compete Beyond Fees

BBVA Deploys Canadian AI for Derivatives Pricing