The Stellar blockchain has made a significant announcement about a massive adoption milestone. The first U.S.-registered fund to use public blockchain technology for processing transactions and recording share ownership is now available on the Stellar network.
Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) is now available on the network through the Benji Investments app.
This news marks the first time a U.S.-registered mutual fund has leveraged public blockchain technology for transaction processing and shares ownership on the Stellar blockchain.
According to a press release, the fund’s transfer agent maintains the official record of share ownership through a proprietary blockchain-integrated system, which currently uses the Stellar blockchain network for transaction activity.
The Stellar network is a distributed ledger technology that enables the transfer of digital assets, such as cryptocurrencies and stablecoins, across borders and platforms.
The blockchain’s interoperability, security, and speed make it an ideal platform for financial transactions, asset management, and cross-border payments.
The announcement also revealed a significant milestone for the first registered U.S. fund on the Stellar network, with assets under management surpassing $270 million.
This milestone reflects the growing adoption of blockchain technology in the financial industry and the potential for greater interoperability between traditional financial institutions and blockchain networks.
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 fund’s integration with the Stellar blockchain network provides additional transparency and efficiency, reducing the costs and risks associated with traditional financial intermediaries.