Franklin Templeton Enhances Fund with Peer-to-Peer Transfers

Franklin Templeton Enhances Tokenized Fund with Peer-to-Peer Transfers

The tokenized U.S. Treasuries market has grown, with its value increasing tenfold since early 2023 to reach $1.2 billion.

Written By:
Kelvin Munene

Last updated: April 26, 2024 12:22 PM

Published April 26, 2024 12:17 AM

Last updated: April 26, 2024 12:22 PM

Published April 26, 2024 12:17 AM

Franklin Templeton, a leading asset management firm, announces a significant update to its Franklin OnChain U.S. Government Money Fund. The firm has introduced a peer-to-peer transfer feature for the BENJI token, representing shares in a $380 million tokenized money market fund.

The BENJI token, operational on the Stellar and Polygon blockchains, now allows token holders to transfer fund shares directly, bypassing intermediaries. This development streamlines transactions and aligns Franklin Templeton’s offerings with digital economy standards where such tokenized assets are becoming commonplace.

We’re excited to announce peer-to-peer transferability for the yield-bearing BENJI security token! This new feature will provide users the ability to send BENJI tokens to other BENJI holder’s digital wallets. One BENJI security token is a share of the Franklin OnChain U.S.… pic.twitter.com/WFhsCyx0BQ
— Franklin Templeton Digital Assets (@FTI_DA) April 25, 2024

Roger Bayston, head of digital assets at Franklin Templeton, emphasized the strategic move, stating that this enhancement is part of the company’s broader goal to integrate blockchain-based assets seamlessly with traditional financial systems.

The capability for peer-to-peer transfers is expected to open new avenues for using BENJI tokens, including trading on secondary markets and using them as collateral on decentralised finance (DeFi) platforms.

Market Impact and Future Prospects

The tokenized U.S. Treasuries market has grown, with its value increasing tenfold since early 2023 to reach $1.2 billion. Franklin Templeton’s BENJI token, launched in 2021, is the largest and oldest in this sector. However, competitors’ introduction of similar functionalities, such as Ondo Finance and BlackRock’s BUIDL fund, poses new challenges.

With this upgrade, Franklin Templeton reinforces its commitment to innovation in the financial sector and positions the BENJI token to compete more effectively in an evolving market. The move will enhance the token’s utility, potentially increasing its appeal to investors seeking secure, blockchain-based assets.

This update marks another step forward in adapting traditional financial services to the demands of the digital age, providing both existing and potential investors with enhanced flexibility and expanded possibilities for their investment activities.