Stellar becomes the first public blockchain to host a US-registered fund
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(Kitco News) - The Stellar (XLM) network has become the first public blockchain to host a U.S.-registered fund following the integration of the Franklin OnChain U.S. Government Money Fund (FOBXX), which has now surpassed $270 million in assets under management.
According to a press release shared by Stellar on Monday, the fund’s transfer agent “maintains the official record of share ownership via a proprietary blockchain-integrated system that currently utilizes the Stellar blockchain network for transaction activity,” making it the first U.S.-registered fund to do so.
The data sheet for the fund indicates that it currently offers a 7-day yield of 4.53%, paid monthly, and has a total AUM of $272.92 million as of March 31.
Interested parties can access the fund via the Benji Investments app, an Android and iOS mobile app released by Franklin Advisers that allows investors to buy, sell, store and explore tokenized securities and cryptocurrencies and “invest in the world’s first tokenized money fund that is natively issued on a blockchain.”
“We believe that blockchain technologies have the potential to reshape the investment management industry by providing greater transparency and lower operational costs for traditional financial products,” said Roger Bayston, head of digital assets at Franklin Templeton. “Blockchains like Stellar’s are important to the investment process of the future, and assets built on blockchain rails, like the Franklin OnChain U.S. Government Money Fund, will eventually be interoperable with the rest of the digital asset ecosystem.”
Franklin Templeton said the fund “reflects a meaningful integration between blockchain technology and traditional financial institutions,” and demonstrates the potential for increased interoperability in the financial system.
The Stellar Development Foundation (SDF), a non-profit organization founded in 2014 that supports the development and growth of the Stellar network, has made a multi-million dollar investment in the fund as part of an effort to diversify its treasury.
“Stellar is built and optimized for asset tokenization, and the Franklin OnChain U.S. Government Money Fund exemplifies the blockchain’s usability,” said Denelle Dixon, CEO and executive director of the SDF. “Stellar is evolving traditional financial products and processes, making markets more accessible, and empowering more people.”
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According to the announcement, the Fund is a regulated 1940 Act fund that invests at least 99.5% of its total assets in government securities, cash and repurchase agreements collateralized fully by government securities or cash.
The investment goal of the fund is “to provide investors with as high a level of current income as is consistent with the preservation of shareholders’ capital and liquidity and aims to maintain a stable $1.00 share price.”
Each share of the Franklin OnChain U.S. Government Money Fund is represented by one BENJI token, and token holders can access the functions offered by the token through the Benji Investments app.