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Stellar’s First US Registered Fund Surpasses $270M in Assets Under Management

In a move that demonstrates the potential for increased interoperability in the financial system, Franklin Templeton has announced that its Franklin OnChain U.S. Government Money Fund (FOBXX) has surpassed $270 million in assets under management (AUM) as of March 31, 2021. What sets this fund apart is that it is the first U.S.-registered fund to use a public blockchain to process transactions and record share ownership.

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. The Fund’s investment goal 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.

Roger Bayston, Head of Digital Assets at Franklin Templeton, believes that blockchain technologies have the potential to reshape the investment management industry by providing greater transparency and lower operational costs for traditional financial products. He states that “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.”

The Stellar Development Foundation made a multi-million dollar investment into the Fund after recognizing the functions and potential applications for these tokens in the digital ecosystem. Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, praised the Fund’s innovative use of blockchain technology, stating that “Stellar is evolving traditional financial products and processes, making markets more accessible, and empowering more people.”

Investors can gain exposure to the Fund in digital wallets through the Benji Investments app, available in mobile app stores. While the Fund offers a competitive yield, investors should carefully consider a fund’s investment goals, risks, charges, and expenses before investing. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, and the Fund’s sponsor has no legal obligation to provide financial support to the Fund.

Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. The California-based company has approximately $1.4 trillion in assets under management as of March 31, 2023.

The Stellar Development Foundation (SDF) is a non-profit organization that supports the development and growth of Stellar, an open-source network that connects the world’s financial infrastructure. The Foundation helps maintain Stellar’s codebase, supports the technical and business communities building on the network, and serves as a voice to regulators and institutions.

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