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Expand on-chain fund FOBXX into polygons
On the 26th, major US asset management company Franklin Templeton announced that it has deployed its mutual fund product OnChain US Government Money Fund (FOBXX) on Polygon (MATIC) blockchain.
It is estimated that by expanding to Polygon, it will be possible to access the market of approximately 35 trillion yen (approximately $260 billion) of Ethereum (ETH) ERC20 standard assets.
Roger Baston, head of digital assets at the company, explains:
Extending the reach of the on-chain US government money fund to Polygon will allow the fund to be even more compatible with other digital ecosystems, especially through the Ethereum (ETH)-based blockchain.
This will further expand the distribution reach of our products through the proven Layer 2 (L2) blockchain.
What is Layer 2 (L2)
A “second layer” blockchain. Writing all transaction histories to the main chain increases the load, slows processing speed, and increases network fees. Therefore, by writing part of the transaction history in the off-chain or side-chain, it is possible to reduce the load on the main chain and improve the processing speed.
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Colin Butler, Global Head of Institutional Investors at Polygon Labs, commented:
Tokenized assets are reshaping the global financial system for the better, and Franklin Templeton is at the forefront of this movement.
In addition, Polygon’s ecosystem spans many L2, sidechains, and other blockchains, and scaling solutions are also being adopted in the DeFi (decentralized finance) and NFT (non-fungible token) fields. continued.
Franklin Templeton is a global investment management firm serving more than 155 countries. It operates in a variety of areas including equities, fixed income, multi-asset solutions and alternative investments.
connection: Franklin Templeton to offer virtual currency management accounts for institutional investors
What is an on-chain US government money fund?
Franklin Templeton’s on-chain US Government Money Fund (FOBXX) will be available in 2021. It is the first US-registered mutual fund to use a public blockchain to process transactions and record ownership of shares.
Since it is deployed on the blockchain, it can be traded 24 hours a day, 365 days a year. One share is expressed in the form of one BENJI token, and the current assets under management (AUM) exceed approximately 36.1 billion yen ($270 million).
FOBXX invests more than 99.5% of its total assets in U.S. government securities, cash, and repurchase agreements fully collateralized by U.S. government securities or cash. It also aims to maintain high yields and a stable $1 share price. We do not invest in crypto assets (virtual currencies).
It has already been deployed on the blockchain of Stellar (XLM), and polygons have been added this time.
The Stellar Development Foundation recently invested approximately ¥2.7 billion ($20 million) in FOBXX. “Our funds were only placed in bank accounts, which weren’t the best place to keep our assets,” Dennell Dixon, CEO of the Foundation, said in a statement.
The post Franklin Templeton Expands US Government Money Fund to Polygon appeared first on Our Bitcoin News.
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