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 US-registered fund following the integration of the Franklin OnChain US Government Money Fund (FOBXX), which has now passed $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 uses the Stellar blockchain network for transaction activity, making it the first US-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 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 published by Franklin Advisers that allows investors to buy, sell, store and explore tokenized securities and cryptocurrencies and “invest in the world’s first initial-issue tokenized mutual fund on a blockchain.”
“We believe that blockchain technologies have the potential to transform the investment management industry by providing greater transparency and lower operating costs for traditional financial products,” said Roger Bayston, head of digital assets at Franklin Templeton. “Blockchains like Stellars are essential to the future of the investment process, and assets built on blockchain rails, like the Franklin OnChain US 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,” demonstrating 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 US Government Money Fund exemplifies blockchain’s ease of use,” said Denelle Dixon, CEO and CEO of SDF. “Stellar is evolving traditional financial products and processes, making markets more accessible and empowering more people.”
According to the announcement, the fund is a 1940 Act regulated fund that invests at least 99.5% of its total assets in government securities, cash and repurchase agreements fully collateralized by government securities or cash.
The investment objective 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 share price of $1.00.”
Each share of the Franklin OnChain US Government Money Fund is represented by one BENJI token, and token holders can access the features provided by the token through the Benji Investments app.
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