FOBXX-World’s 1st Mutual Fund On Public Blockchain
By Laxmikant Khanvilkar
Blockchain has encapsulated the modern day technology driven financial sector in a big way. It is set to enhance further, the way investors approach investing in several asset class.
From private virtual digital currencies, health insurance products, to converting art works into digital collectibles, the rising use cases of blockchain underlines immense potentials of technology in financial markets.
Adding the feather in the crown is the launch of first Mutual Fund on the public blockchain.
The Stellar blockchain has announced massive adoption news. The first U.S.-registered fund to use a public blockchain to process transactions and record share ownership is now available on the Stellar network.
The fund that will be available on the Stellar Network is Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX). This was discloses by Stellar Network in a tweet through the Benji Investments app.
According to a press release, this is the first U.S.-registered mutual fund to use public blockchain technology for transactions and share ownership on the Stellar blockchain.
The Stellar blockchain, is one among many networks that store and transmit cryptocurrencies. The stellar blockchain, with its Lumens token, has gained prominence following the growth of Bitcoin over the last ten years. Many virtual currencies and platforms racked up impressive gains and user bases.
Per the announcement, 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.
It must be noted that the Stellar blockchain uses a consensus algorithm, which is faster, cheaper, and energy-efficient. Stellar blockchain was launched in 2014 by Jed McCaleb, who also founded Mt. Gox and co-founded Ripple.
Meanwhile, Stellar has also revealed an exciting milestone for the first registered U.S. fund on its network, which surpassed $270 million in assets under management (AUM). Franklin Templeton is one of the world’s largest asset managers with an AUM of $1.5 trillion.
The development is significant as it shows the potential for greater interoperability in the financial system by reflecting a considerable integration between blockchain technology and traditional financial institutions.
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.
You need to login in order to Like
