Franklin Templeton, a $1.4 trillion asset manager, has launched its blockchain-run mutual fund on the Ethereum layer-2 scaling solution Polygon (MATIC). The Franklin OnChain U.S. Government Money Fund (FOBXX) is the first US-registered mutual fund to use a public blockchain to execute transactions and record share ownership.
What is the Franklin OnChain U.S. Government Money Fund (FOBXX)?
The Franklin OnChain U.S. Government Money Fund (FOBXX) is a US-registered mutual fund managed by Franklin Templeton. The fund primarily invests in government securities, cash and repurchase agreements. It recently surpassed $272 million in assets under management.
What are the benefits of using blockchain technology for FOBXX?
Franklin Templeton is using blockchain technology to increase operational efficiencies and enhance security for FOBXX. The fund is now connected to the Ethereum-based Polygon (MATIC) blockchain, enabling faster transaction processing and reduced costs for fund shareholders. The fund also uses the Stellar network for transaction activities.
By using blockchain technology, Franklin Templeton is able to increase the security of FOBXX, improve transaction processing speed, and reduce costs for fund shareholders. The use of blockchain also enables the fund to be more compatible with the rest of the digital ecosystem.
The fund on Polygon (MATIC) marks a significant milestone for the Ethereum ecosystem. As the first US-registered mutual fund to use a public blockchain to execute transactions and record share ownership signals growing adoption of blockchain technology in the traditional finance industry.
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