The Stellar blockchain has launched the first U.S.-registered mutual fund to use public blockchain technology for transactions and share ownership. The Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) is now available on the Stellar network through the Benji ...
- The Stellar blockchain has launched the first U.S.-registered mutual fund to use public blockchain technology for transactions and share ownership.
- The Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) is now available on the Stellar network through the Benji Investments app.
Stellar Network Launches First US Mutual Fund on Public Blockchain: Details
The Stellar blockchain has made a significant announcement regarding the first U.S.-registered mutual fund that will use public blockchain technology for transactions and share ownership. According to a press release, Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) is now available on the Stellar network through the Benji Investments app.
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.
Big news! Franklin Templeton's (@FTI_DA) OnChain U.S. Government Money Fund is now available on the Stellar network through the Benji Investments app. The first mutual fund to use public blockchain technology for transactions and share ownership. https://t.co/LAbSwSS7MU— Stellar (@StellarOrg) April 24, 2023
Exciting Milestone Reached by Stellar Network
The first registered U.S. fund on the Stellar network, OnChain U.S. Government Money Fund from Franklin Templeton, has achieved a new milestone. The fund has surpassed $270 million in assets under management (AUM). This development is crucial because it highlights the potential for greater interoperability in the financial system by reflecting a significant integration between blockchain technology and traditional financial institutions.
Interoperability in the Financial System
The integration between blockchain technology and traditional financial institutions shows that the two can work together to create an interoperable financial system. The on-chain U.S. Government Money Fund from Franklin Templeton is a 1940 Act fund that invests at least 99.5% of its total assets in cash, government securities, and repurchase agreements collateralized fully by government securities or cash.
The announcement of this fund on the Stellar network indicates that blockchain technology has a promising future in traditional finance, which can make transactions more efficient, secure and cost-effective.
Stellar-Enabled Digital Wallet Integration
Earlier in the month, Decaf, a Stellar-enabled digital wallet, announced an integration with the global on/off-ramp service for digital wallets powered by MoneyGram and the Stellar Development Foundation (SDF). Through this integration, Decaf users can transition between cash and digital currency. This integration will enable users to send money instantly to anyone in the world, and it will help to expand the reach of digital wallets in traditional finance.
In conclusion, the launch of the first U.S.-registered mutual fund on the public blockchain is a significant milestone for Stellar and the entire blockchain industry. This development reflects a considerable integration between blockchain technology and traditional financial institutions, which is crucial for the creation of a more interoperable financial system.