Franklin Templeton formally announced that the Franklin OnChain U.S. Government Money Fund (FOBXX) is now positioned on the Polygon blockchain. It is the very first U.S. registered mutual fund that will be utilizing a public blockchain to process transactions and note down share ownership.
According to Franklin Templeton, the effectiveness of all operations becomes heightened with a blockchain-incorporated module. This also brings about better safety standards, quicker processing of transactions, and more cost-effectivity, an exclusive package deal for the sake of Fund shareholders.
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According to the Head of Digital Assets at Franklin Templeton, Roger Bayston, furthering the Franklin OnChain U.S. Government Money Fund onto Polygon makes it possible for the Fund to become more adaptable with the remaining digital ecosystem. This brings about a broader distribution scenario with the help of a Layer 2 blockchain that is dependable.
The Fund, on its part, makes provision for better yield. Since it is a regulated 1940 Act Fund, it invests in government securities and cash and repurchases agreements wholly collateralized through government securities and cash. These investments involve about 99.5% of its total assets. The Fund’s investment intends to keep the share price at a steady $1.00. A single share of the Franklin OnChain U.S. Government Money Fund constitutes a single BENJI token.
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Colin Butler, the Global Head of Institutional Capital at Polygon Labs, is pleased that Franklin Templeton helps bring about clarity, interoperability, and safety factors in terms of its financial tools. In his opinion, the tokenized assets will be instrumental in recuperating the world financial module, and Franklin Templeton will be a leader in the domain. The Polygon blockchain ecosystem passes through Layer 2, side chains, and sovereign blockchains. The entire array of Ethereum upgradability solutions has witnessed increased acceptance all through DeFi, as well as NFTs and organizations. He also mentions that the Polygon blockchain creates connectivity with a $260 billion market, equivalent to almost a collective value of all ERC-20 (Ethereum-oriented) assets.
