Franklin Templeton goes one step further with tokenization

On April 25, 2024, Franklin Templeton, one of the largest asset management firms, announced that Franklin OnChain US Treasury Fund (FOBXX) shares are now available on the public blockchain for peer-to-peer trading.

This represents a major step forward in integrating traditional finance with blockchain technology.

Industry leaders praise Franklin Templeton's Tokenization development

In the year Launched in 2021, Franklin OnChain US Government Fund is the first US-registered fund to process public blockchain transactions and record share ownership.

BENJI tokens, running on the Stellar (XLM) and Polygon (MATIC) blockchains, uniquely represent shares of the FOBXX fund. The fund's transfer agent actively maintains public share ownership records through a proprietary system integrating blockchain technology.

Read more: See RWA Tokenization: Security and Trust

The BENJI token includes government securities, cash and purchase agreements. In addition, it provides consistent yield to its owners and appeals to investors seeking stable returns.

Roger Baiston, head of digital assets at Franklin Templeton, expressed excitement about the new capabilities introduced by blockchain technology.

“We're excited that Benji token holders can now transfer shares to each other. Eventually, we hope that assets built on the blockchain, like the Franklin OnChain US Treasury Fund, will work seamlessly with the rest of the digital asset ecosystem,” Beston said.

Additionally, Franklin Templeton allows individual investors to access its funds through the Benji Investments app on Android and iOS devices. Industry leaders have welcomed this development. Polygon founder Sandeep Nilwal highlighted the importance of this innovation.

“This is HUGE!!! Franklin Templeton, one of the largest financial institutions in the world, has enabled Peer-to-Peer Transfers (BENJI) in the US Government Fund on Polygon.

Colin Butler, head of global institutional capital at Polygon, also commented on the potential impact of change.

“With a 32 percent share of the U.S. Treasury market, Franklin Templeton's Benji presence on the chain represents a major opening for the future of digital natives. On the chain today, it can be assembled and assembled tomorrow,” Butler said.

Data from rwa.xyz confirms the fund's leading position, with Franklin Templeton's US government funds holding the largest market share in the category. Institutional Digital Liquidity Fund (BUIDL) and Ondo's USD product.

Read more: What is Real World Asset (RWA) Token Impact?

BUIDL and Ondo's USD product have capitalizations of USD 304.61 million and USD 119.69 million respectively.