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Franklin Templeton Expands Money Market Fund on Polygon: How is it Helpful

The Franklin Templeton fund is the first U.S. registered mutual fund to use a public blockchain for transaction processing and recording share ownership. 

Franklin Templeton Taps Into Blockchain Technology 

Franklin Templeton, which manages $1.4 trillion in assets, announced that its OnChain U.S. Government Money Market Fund (FOBXX) now supports Ethereum via layer 2 blockchain Polygon.

The fund became the first American mutual fund to process transactions and record shares ownership using a public blockchain, according to the firm's press release. The Franklin Templeton und invests more than 99% of its assets in government securities, cash, and repurchase agreements to meet its goal of providing stable income to holders. 

In a recent statement, Franklin Templeton said integrating blockchain into its system provides "operational efficiencies" such as greater security, faster transaction processing, and lower costs.

According to Colin Butler, Global Head of Institutional Capital at Polygon Labs, Franklin Templeton will use Polygon to provide transparency, interoperability, and safe, democratized access to their financial instruments.

Investing in money market funds allows investors to earn a high return on a low-risk investment. In addition, these funds invest in highly liquid, short-term securities. The firm announced in September that it would offer digital asset strategies to wealth managers.

FOBXX Manages $270M in Assets

Franklin Templeton’s FOBXX is a crypto product that invests cash in American government securities, cash, and repurchase agreements. The product has over $270 million in assets under management (AUM). 

Franklin Templeton’s Nasdaq-listed OnChain U.S. Government Money Fund (FOBXX) will use Polygon to be further compatible with the rest of the digital ecosystem. Franklin Templeton's fund is represented by one "BENJI" token that users can obtain through digital wallets via the Benji Investments app.

The recent move by Franklin Templeton represents a significant step forward in the adoption of blockchain technology within traditional financial institutions. 

Franklin Templeton announced a digital asset venture fund two years ago, and a money market fund has been digitizing shares on Stellar blockchain since 2019.

What is Polygon:

Polygon is a “sidechain” scaling solution that runs alongside the Ethereum blockchain — allowing for speedy transactions and low fees. MATIC is the network’s native cryptocurrency, used for fees, staking, and more. The effectiveness of Polygon as an alternative to Ethereum has seen existing projects such as Aave and Curve adopting its chain.

For more about Polygon:

Website | Twitter | GitHub | Reddit | YouTube

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