The Stellar blockchain has made waves in the financial industry with its latest announcement of massive adoption news.
The network has launched the first U.S.-registered mutual fund to use a public blockchain to process transactions and record share ownership, and it’s now available through the Benji Investments app.
In a tweet, Stellar shared that Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) is the first mutual fund to use public blockchain technology for transactions and share ownership on the Stellar blockchain.
According to a press release, 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 announcement is a significant milestone for the financial industry, showcasing the potential for greater interoperability between blockchain technology and traditional financial institutions.
With over $270 million in assets under management (AUM), 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.
The move towards blockchain technology in traditional financial institutions marks a turning point in the industry, with more institutions adopting the technology for its security and efficiency benefits.
By utilizing the Stellar blockchain network, Franklin Templeton’s OnChain U.S. Government Money Fund can offer its investors enhanced security and transparency in their transactions.
The Stellar blockchain network has proven to be a reliable and efficient option for traditional financial institutions looking to integrate blockchain technology.
With the launch of the first U.S.-registered mutual fund to use a public blockchain, Stellar has paved the way for further adoption of blockchain technology in the financial industry.
