Franklin Templeton Expands Its US Government OnChain Fund to…

Franklin Templeton Expands Its US Government OnChain Fund to…

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Franklin Templeton, an investment management giant with around $1.4 trillion in assets under management, has expanded its OnChain US Government Money Fund to the Polygon blockchain.

Launched in 2021, the fund was first available on the Stellar blockchain. Polygon is the second blockchain supported by the fund, a Franklin Templeton a spokesman told The Block, adding that more networks could be supported in the future.

“By expanding the reach of the Franklin OnChain US Government Money Fund to Polygon, the fund can be further interoperable with the rest of the digital ecosystem, particularly through an Ethereum-based blockchain,” said Roger Bayston, head of digital assets at Franklin Templeton in a Opinion. “This expands our distribution reach with a Layer 2 (L2) blockchain that has a proven track record.”

What is the Franklin OnChain US Government Money Fund?

FOBXX is the first US-registered mutual fund to use a public blockchain to process transactions and record ownership. The fund’s transfer agent, Franklin Templeton Investor Services, maintains the official records of shareholdings through a proprietary blockchain-integrated system.

Since blockchains are available 24/7, the fund is always available for trading. It is available through Franklin’s Benji Investments app and is currently available has over $270 million in assets under management.

Stellar Development Foundation, a non-profit organization supporting the Stellar blockchain, recently invested $20 million in the fund. Polygon Labs declined to comment when asked if it has also invested in the fund.

The fund’s investment strategy

As a money market fund, the fund invests at least 99.5% of its total assets in US Treasury bonds, cash and repurchase agreements fully collateralized by US Treasury bonds or cash, according to its website. The Fund aims to provide a competitive yield and maintain a stable $1 share price.

As with any other mutual fund, an investment in the Franklin OnChain US Government…



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