Franklin Templeton tokenized $380 million in government bonds on the Polygon and Stellar blockchains to enable peer-to-peer (P2P) transfers without intermediaries.
The company launched the Franklin Onchain U.S. Government Money Fund (FOBXX) and offered its shares as BENJI tokens. Each token represents his share of FOBXX and can be traded on the public Polygon and Stellar blockchains.
This innovation aims to simplify trading and expand access, giving investors more flexibility in managing their assets through direct trading.
The integration of blockchain technology into Franklin Templeton's financial operations aims to increase liquidity and efficiency in asset management. The company responds to the growing demand among financial institutions to blend traditional financial structures with modern technology solutions.
Tokenization of government securities and other assets represents a significant advancement in digital asset management, increasing transparency, security, and efficiency.
BlackRock BUIDL
This development puts the investment giant in direct competition with BlackRock's tokenization efforts. The asset manager recently partnered with Securitize to deploy his BUIDL fund on Ethereum.
The fund primarily focuses on the tokenization of U.S. Treasury securities and aims to provide investors with new avenues for safe and efficient investment in government-backed securities through blockchain technology. By leveraging the Ethereum platform, the BUIDL Fund ensures robust security features and wide compatibility with a variety of digital wallets and trading platforms.
The introduction of BUIDL funds to the market quickly attracted attention from investors looking for innovative ways to diversify their portfolios and manage their assets with increased transparency and reduced trading times.
While the asset manager is rapidly gaining traction, Franklin Templeton maintains its leading position in the tokenized U.S. Treasury sector with 32% market share.
