The asset management firm has launched its blockchain fund on the Ethereum layer-2 scaling solution in an attempt to move it toward higher adoption.
The Franklin OnChain US Government Money Fund (FOBXX), the asset manager’s blockchain fund, is now available on the Arbitrum network. The latter is a layer-2 scaling solution for the Ethereum blockchain. Meanwhile, the fund was already available on blockchains like Polygon and Stellar.
The latest expansion will enable investors to use the Arbitrum network to investment platform, whereas they were earlier using Franklin’s Benji platform. However, they will get the option to do so. Moreover, launching the fund in Arbitrum could be a move to integrate decentralized finance with traditional financial products. But the fund will only be available for institutional investors initially.
The firm’s blockchain fund is a money market fund, holding low risk securities. On the other hand, it holds over $420 million in assets under management. Representatives of Franklin Templeton spoke to news platforms about the benefits of the move. They noted that the decision will allow them to augment their asset management capabilities with the help of blockchain technology.
First launching in 2021, the fund is the largest tokenized product linked to the US treasury. At the same time, Franklin Templeton publicly advocated about the benefits of crypto and blockchain. As a result, future pro-crypto initiatives from them, like this fund, can also come up.
As a use case, tokenization has gathered popularity in the last few years. This process of converting assets into digital tokens on a blockchain is revolutionizing the financial landscape.
By representing assets as divisible and transferable digital tokens, tokenization unlocks a series of benefits for both issuers and investors. From faster settlement to lower costs, tokenized assets have displayed various advantages.
Thus, it is not surprising that so many global initiatives are underway to promote tokenization.
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