On April 25, 2024, Franklin Templeton, one of the biggest asset manager firms, unveiled that its Franklin OnChain US Government Money Fund (FOBXX) shares are now available for peer-to-peer transfer on the public blockchain.
This marks a significant step forward in integrating traditional finance with blockchain technology.
Industry Leaders Praises Franklin Templeton’s Tokenization Development
Launched in 2021, the Franklin OnChain US Government Money Fund is the first US-registered fund to leverage public blockchain for processing transactions and recording share ownership.
BENJI tokens, operating on the Stellar (XLM) and Polygon (MATIC) blockchains, uniquely represent the FOBXX fund shares. The fund’s transfer agent actively maintains the official share ownership records through a proprietary system integrating blockchain technology.
Read more: RWA Tokenization: A Look at Security and Trust
The BENJI token encompasses government securities, cash, and repurchase agreements. Furthermore, it offers a steady yield to its holders and appeals to investors seeking stable returns.
Roger Bayston, Head of Digital Assets at Franklin Templeton, expressed his enthusiasm about the new capabilities introduced by blockchain technology.
“We are excited that BENJI token holders will now be able to transfer shares amongst each other. Eventually, we hope for assets built on blockchain rails, such as the Franklin OnChain US Government Money Fund, to work seamlessly with the rest of the digital asset ecosystem,” Bayston said.
Additionally, Franklin Templeton has enabled individual investors to access the fund through the Benji Investments app, which is available on Android and iOS devices. Industry leaders have praised this development. Sandeep Nailwal, the founder of Polygon, highlighted the importance of this innovation.
“This is HUGEEE!!! Franklin Templeton, one of the largest financial institutions in the world, has enabled peer-to-peer transfers of tokenized shares (BENJI) in its US Government Money Fund on Polygon,” Nailwal shared.
Colin Butler, Global Head of Institutional Capital at Polygon, also commented on the potential transformative impact.
“With 32% of the tokenized US Treasury market share, Franklin Templeton’s BENJI being fully on-chain represents a HUGE unlock for a digitally native future. On-chain today, aggregated & composable tomorrow,” Butler remarked.
Data from rwa.xyz confirms the fund’s leading position, with Franklin Templeton’s US Government Money Fund holding the largest market share in its category, boasting a market capitalization of $380.37 million as of April 25, 2024. This positions it ahead of competitors like BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and Ondo US Dollar Yield.
Read more: What is The Impact of Real World Asset (RWA) Tokenization?
BUIDL and Ondo US Dollar Yield have market capitalizations of $304.61 million and $119.69, respectively.
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