Franklin Templeton tokenizes $380M fund on Polygon and Stellar for P2P transfers

Franklin Templeton tokenizes $380M fund on Polygon and Stellar for P2P transfers

By Charles Thuo - min read
Franklin Templeton proposes a 0.19% fee in its amended Spot Ethereum ETF S-1
  • The Franklin OnChain FOBXX investors can now transfer the fund’s BENJI token directly between each other without any intermediary.
  • Franklin Templeton is competing with BlackRock’s Ethereum-based BUIDL fund in the tokenized assets niche.
  • Franklin Templeton maintains a 32% market share.

In a move that marks a significant advancement in the realm of digital asset management, Franklin Templeton has announced the tokenization of its US Government Fund on the Polygon and Stellar blockchains.

By embracing blockchain technology, Franklin Templeton aims to enable peer-to-peer transfers for shares in its Franklin OnChain United States Government Money Fund (FOBXX) using BENJI token.

One BENJI security token is a share of the Franklin OnChain U.S. Government Money Fund recorded on a public blockchain and it is currently available on Polygon and Stellar.

Franklin Templeton competing with BlackRock

Franklin Templeton’s initiative comes amidst a competitive landscape, with BlackRock’s new BUIDL fund emerging as a formidable contender in the tokenization space.

Partnering with Securitize on Ethereum, BlackRock’s BUIDL fund has swiftly garnered market share, albeit slightly trailing Franklin Templeton’s offering in terms of Assets Under Management (AUM).

The competition between these two investment giants is poised to intensify as they vie for dominance in the tokenized U.S. Treasuries niche. At the moment, Franklin Templeton maintains its stronghold in the tokenized U.S. Treasuries niche, boasting a substantial market share of 32%.

Expanding utility in the digital asset ecosystem

The tokenization of Franklin Templeton’s US Government Funds signifies a strategic move towards enhancing connectivity within the digital asset ecosystem.

By enabling peer-to-peer transfers of BENJI tokens, the firm aims to broaden the utility of its fund, allowing investors greater flexibility in managing their assets. The move underscores Franklin Templeton’s commitment to leveraging blockchain technology to innovate and adapt to evolving market trends.