- Franklin Templeton expands its tokenized US Government Money Fund in collaboration with Arbitrum.
- The Benji Investments app and website provide access to the US Government Money Fund (FOBXX).
- The fund invests in government securities and seeks competitive returns with a stable $1 share price.
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Franklin Templeton, a prominent figure in asset management, has partnered with Arbitrum Foundation to introduce the Franklin OnChain US Government Money Fund (FOBXX).
The partnership represents increasing institutional interest in advancing the integration of decentralized finance (DeFi) with traditional finance (TradFi).
Franklin Templeton Uses Arbitrum Tokenized Fund to Increase DeFi Push
Investors can now use Franklin Templeton’s blockchain-integrated recordkeeping system, Benji, for the FOBXX fund thanks to the launch, which was announced on August 8. Institutional investors must transact using the Benji Institutional web platform, while retail investors can access the instrument via the Benji Investments mobile app.
FOBXX was the first fund launched via a public blockchain and registered in the United States when it first debuted on Stellar in April 2021. The fund then moved to April’s Polygon and is currently in Arbitrum.
The managers of the fund want to accumulate a varied assortment of government securities. Investments in FOBXX, like all mutual funds, are not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government organization.
Franklin Templeton submitted the application for the first time in May, per a report on the Arbitrum Foundation forum. It applied to be included in the Stable Treasury Endowment Program (STEP) of Arbitrum. The assets manager intends to deploy more networks in the future in order to increase TradFi integration into DeFi.
The release claims that blockchain technology is advantageous to the fund’s investors. It makes operational efficiencies possible, including higher security, faster transactions, and lower expenses.
As it is, FOBXX maintains connections with some of the biggest DAOs in the ecosystem for digital assets. Additionally, Franklin Templeton disclosed that its digital asset investment portfolios contain a number of governance tokens.
The growing interest in tokenized government securities is reflected in this development. According to data from 21.co on Dune Analytics, the industry currently records $1.8 billion in assets under management (AUM) as a result of expanding mainstream usage. Important participants in this market include BUIDL from BlackRock, BENJI from Franklin Templeton, and USDY and UOSG from Ondo Finance.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
