Investment management firm Franklin Templeton tokenized a $380 million bond fund on the Polygon and Stella blockchains

On April 25,

the company launched Franklin OnChain United States Government Money Fund (FOBXX), offering shares in the form of BENJI tokens. Each token represents a portion of FOBXX, which is tradable on the public Polygon and Stellar blockchains. BENJI token holders can transfer shares to each other.

The tokenization of government securities and other assets marks a significant advancement in digital asset management, bringing greater transparency, security, and efficiency.
With the growing interest of institutional investors in cryptocurrencies, tokenization has become one of the hottest sectors today.

Earlier, asset manager BlackRock introduced the tokenized fund BUIDL on Ethereum in partnership with Securitize. The fund is primarily focused on the tokenization of cash, certificates of deposit, redemption agreements, U.S. government bonds and asset equivalents. The fund provides users with new directions to safely and efficiently invest in government-backed securities through blockchain technology. By leveraging the Ethereum platform, the BUIDL fund ensures strong security features, wide compatibility with various digital wallets and trading platforms.

Although

BlackRock quickly gained attention with its BUIDL fund, Franklin Templeton maintained its lead with a 32% market share in the tokenization of U.S. Treasury bonds.

Franklin Templeton integrates blockchain technology into financial operations that enhances liquidity, expands access, and manages assets more flexibly through face-to-face trading. The company combines traditional financial structures with state-of-the-art technological solutions to meet today's growing needs.

Polygon Labs — the company that developed the Polygon blockchain — was one of the first to call for companies to enter the tokenization sector.

Meanwhile, the Stellar blockchain is also involved in the process and has partnered with asset manager WisdomTree. The two parties jointly issue a number of "digital funds" — products similar to standard mutual funds, but in them, the transfer agent also keeps secondary records of shares on the Stellar or Ethereum blockchains.

Tokenization is the process of converting traditional assets such as real estate, stocks, or commodities into tokens on a blockchain network. Tokens are usually tokenized and record information about the asset they represent. The tokenization process allows for easy trading, sharing, and transfer of assets. This creates higher liquidity and increases access to assets for investors.

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