In line with an Aug. 8 announcement, Franklin Templeton is launching its tokenized cash fund on the Arbitrum community in what the asset supervisor describes as “an ongoing effort to bridge the hole between conventional and decentralized finance.”
Created in 2021, the Franklin OnChain US Authorities Cash Fund (FOBXX) is accessible via Franklin Templeton’s Benji Investments platform. Customers can now select to amass and maintain the fund’s tokenized shares on Arbitrum, together with different networks corresponding to Stellar and Polygon.
Cash funds generate low-risk yields for traders by holding extremely liquid belongings corresponding to short-dated Treasury payments and industrial paper. Franklin Templeton’s FOBXX at present has internet belongings of roughly $420 million and has been producing annualized returns of about 5.25% as of June 2024.
Associated: Exclusive: Franklin Templeton mulls bringing RWAs to Ethereum, user-managed wallets
The partnership is a big win for Arbitrum as a result of it implies that United States regulators contemplate Arbitrum’s public ledger to be a reliable instrument for monetary recordkeeping.
Arbitrum is Ethereum’s hottest layer-2 scaling answer, with a complete worth locked (TVL) of roughly $14 billion, according to L2Beat.
“We’re at present the one product with the flexibility to make use of public distributed ledger applied sciences for official transaction record-keeping,” Roger Bayston, Franklin Templeton’s head of digital belongings, told Cointelegraph in July.
Launching FOBXX on Arbitrum “aligns with our mission to offer scalable and environment friendly options for the monetary sector,” Steven Goldfeder, CEO and co-founder of Arbitrum-developer Offchain Labs, stated in an announcement.
The Arbitrum launch marks Franklin Templeton’s newest effort to reinforce the accessibility of its tokenized real-world belongings (RWAs). The asset supervisor has plans to broaden to new chains and make its RWAs accessible to user-managed wallets, based on Bayston.
“Increasing into the Arbitrum ecosystem is a crucial step on our journey,” Bayston stated in an announcement.
Journal: Real-world assets evolve finance by tokenizing everything, says Kinto co-founder
