Franklin Templeton Adopts Aptos Blockchain for U.S. Fund

Wall Street giant Franklin Templeton has announced the transition of its Nasdaq-listed On-Chain U.S. Government Money Fund (FOBXX) to the Aptos blockchain. Marking a significant step in the firm’s embrace of blockchain technology for financial services.

Embracing Blockchain Innovation

The move to Aptos, a blockchain platform developed by alumni of Meta’s unsuccessful Diem project. Represents Franklin Templeton’s commitment to fostering a “truly decentralized and accessible financial future.” Aptos is known for its robust capabilities in supporting developers to create decentralized applications (dapps), launch tokens, and more. Positioning it as an attractive option for Franklin Templeton’s needs.

“We chose the Aptos network given its unique characteristics, which meet our rigorous suitability standards for the Benji platform,” explained Roger Bayston, Franklin Templeton’s head of digital assets. The Benji platform is Franklin Templeton’s mobile app through which investors can purchase and hold FOBXX shares in digital wallets.

FOBXX Fund Characteristics

FOBXX is a digitized fund that allows customers to invest in U.S. government securities, cash, and repurchase agreements. The transition to blockchain technology aims to enhance the transparency. And efficiency of transaction processing and share ownership recording.

Diverse Blockchain Integrations

Prior to Aptos, FOBXX had been integrated with several other blockchains including Avalanche, Arbitrum, Stellar, and Polygon. Avalanche being the most recent addition before Aptos in late August. Franklin Templeton highlighted that FOBXX is the “first and only U.S.-registered fund to use a public blockchain as the system of record” for processing transactions and recording share ownership.

Franklin Templeton’s Crypto Journey

Since 2019, Franklin Templeton has been active in the digital asset space. Starting with the digitization of shares for a money market fund on the Stellar blockchain. Additionally, the firm ventured into digital assets more directly two years ago with the announcement of a digital asset venture fund. Signaling its growing interest and investment in the potential of blockchain technologies.

Franklin Templeton’s adoption of the Aptos blockchain for its On-Chain U.S. Government Money Fund. It is a clear indicator of the financial industry’s continued shift towards incorporating blockchain technology to modernize and enhance the security and efficiency of traditional financial instruments. This move underscores the company’s innovative approach to investment management in the digital age.