Franklin Templeton Money Market Fund Launches on Arbitrum Blockchain

Rhea-AI Summary

Franklin Templeton and the Arbitrum Foundation have announced that the Franklin OnChain U.S. Government Money Fund (FOBXX) is now available on the Arbitrum blockchain, a leading Ethereum Layer 2 solution. This collaboration aims to bridge traditional and decentralized finance, allowing investors to access FOBXX through digital wallets via the Benji Investments platform. Franklin Templeton's move to integrate with Arbitrum expands FOBXX's compatibility within the digital assets ecosystem, potentially reaching a new audience.

FOBXX, launched in 2021, is notable as the first U.S.-registered fund to use a public blockchain for transaction processing and share ownership recording. This expansion into the Arbitrum ecosystem is part of Franklin Templeton's ongoing efforts in blockchain technology and digital assets, which began in 2018. The firm views this partnership as a significant step in enhancing its asset management capabilities with blockchain technology.

Positive

• Expansion of FOBXX availability to the Arbitrum blockchain, potentially reaching a new audience
• First U.S.-registered fund to use public blockchain for transaction processing and share ownership recording
• Integration with Arbitrum may accelerate the adoption of decentralized finance within traditional financial services

Negative

• None.

News Market Reaction

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On the day this news was published, BEN gained 2.33%, reflecting a moderate positive market reaction.

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The collaboration marks an ongoing effort to bridge the gap between traditional and decentralized finance

NEW YORK, Aug. 8, 2024 /PRNewswire/ -- The Arbitrum Foundation and global asset manager Franklin Templeton today announced the Franklin OnChain U.S. Government Money Fund (FOBXX) is available on Arbitrum, the leading Ethereum Layer 2 blockchain. Investors can gain exposure to FOBXX in digital wallets through the Benji Investments platform, Franklin Templeton's proprietary blockchain-integrated recordkeeping system, and may use the Arbitrum network upon request and subject to eligibility.

The collaboration will accelerate the integration of decentralized finance within traditional financial services. By onboarding the Arbitrum network to the Benji Investments platform, Franklin Templeton will further extend the compatibility of FOBXX within the digital assets ecosystem and reach a previously untapped audience for the asset manager.

Steven Goldfeder, CEO and Co-Founder of Offchain Labs—core contributors to Arbitrum—commented, "Franklin Templeton's commitment to innovation aligns with our mission to provide scalable and efficient solutions for the financial sector. We are excited to see Franklin Templeton join the Arbitrum ecosystem and look forward to the transformative impact their participation will bring to our community."

Since 2018, Franklin Templeton Digital Assets has been building blockchain-based technology solutions, running node validators, and developing a wide range of investment strategies. The firm's dedicated digital assets research team leverages fundamental "tokenomic" analysis, insights from an embedded data science team and deep industry connections to help inform product development and investment decisions.

"Expanding into the Arbitrum ecosystem is an important step on our journey to empower our asset management capabilities with blockchain technology," said Roger Bayston, Head of Digital Assets at Franklin Templeton. "We are enthusiastic about the opportunities this partnership will unlock for our firm and our clients."

FOBXX was introduced in 2021 and is the first and only U.S.-registered fund to use a public blockchain as the system of record to process transactions and record share ownership. Individual investors can download the Benji Investments mobile app on Apple and Android devices, while institutional investors can access the platform through the Benji Institutional web portal.

For more information about Franklin Templeton Digital Assets, visit: https://www.alternativesbyft.com/expertise/specialist-managers/franklin-templeton-digital-assets   

About The Arbitrum Foundation
The Arbitrum Foundation, founded in March 2023, supports and grows the Arbitrum network and its community with secure scaling solutions for Ethereum. Arbitrum One—a leading Ethereum Layer-2 scaling solution initially developed by Offchain Labs—offers ultra-fast, low-cost transactions with security derived from Ethereum through Optimistic Rollup technology. Launched in August 2021, the Arbitrum One mainnet beta is EVM-compatible to the bytecode level and has 54%+ TVL in the L2 segment. 2000+ DeFi and NFT projects are live in the ecosystem to date. In August 2022, Arbitrum One upgraded to Nitro tech stack, enabling fraud proofs over the core engine of Geth compiled to WASM.

About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.6 trillion in assets under management as of June 30, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, X and Facebook.

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress. Although the fund invests in U.S. government obligations, an investment in the fund is neither insured nor guaranteed by the U.S. government.

All investments involve risk, including loss of principal. There are risks associated with the issuance, redemption, transfer, custody, and record keeping of shares maintained and recorded primarily on a blockchain. For example, shares that are issued using blockchain technology would be subject to risks, including the following: blockchain is a rapidly-evolving regulatory landscape, which might result in security, privacy or other regulatory concerns that could require changes to the way transactions in the shares are recorded. The fund's yield may be affected by changes in interest rates and changes in credit ratings. These and other risks are discussed in the fund's prospectus.

Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial professional, call us at (800) DIAL BEN/342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.

Please note that you generally may only buy shares of a fund eligible for sale in your state or jurisdiction. The Fund is intended for sale to residents of the United States, and, with very limited exceptions, are not registered or otherwise offered for sale in other jurisdictions.

Franklin Distributors, LLC. Member FINRA/SIPC.

Media Contact
arbitrumpr@mgroupsc.com

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SOURCE Arbitrum Foundation and Franklin Templeton

FAQ

What is the Franklin OnChain U.S. Government Money Fund (FOBXX) and how is it now accessible?

FOBXX is a U.S. government money market fund that is now available on the Arbitrum blockchain. Investors can access it through digital wallets via the Benji Investments platform, Franklin Templeton's blockchain-integrated recordkeeping system.

How does the collaboration between Franklin Templeton and Arbitrum affect BEN stock?

While not directly mentioned, this collaboration could potentially impact BEN stock by expanding Franklin Templeton's reach in the digital asset space and demonstrating the company's commitment to innovation in financial technology.

When was FOBXX launched and what makes it unique in the U.S. fund market?

FOBXX was introduced in 2021 and 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.

How can individual and institutional investors access the Franklin OnChain U.S. Government Money Fund (FOBXX)?

Individual investors can access FOBXX through the Benji Investments mobile app available on Apple and Android devices. Institutional investors can access it through the Benji Institutional web portal.