Franklin Templeton Launches P2P Transfers for $380 Million Tokenized Treasury Fund

“Franklin Templeton has announced an innovative feature for its $380 million money market fund: peer-to-peer transfers using its BENJI token on the Stellar and Polygon blockchains. This new capability allows investors in the Franklin OnChain U.S. Government Money Fund (FOBXX) to transfer BENJI tokens directly to each other, bypassing traditional intermediaries.

The BENJI token, active on both Stellar (XLM) and Polygon (MATIC) blockchains, symbolizes ownership of shares within the fund, which is comprised of government securities, cash, and repurchase agreements. This setup aims to provide a reliable yield to its holders.

Jason Chlipala, Chief Business Officer at Stellar Development Foundation, highlighted that this advancement positions Franklin Templeton as a leader in the financial industry, enhancing the principles of transparency and accessibility. The introduction of peer-to-peer transfers not only increases the utility of the token but also opens up possibilities for its use in secondary market trading or as collateral on decentralized finance (DeFi) platforms.

Roger Bayston, Head of Digital Assets at Franklin Templeton, noted the critical role of integrating blockchain-based assets into the broader digital asset landscape. Tokenizing U.S. Treasuries is becoming increasingly popular, paving the way for traditional financial assets on blockchain platforms. Current market data from rwa.xyz reports that the market for such blockchain-based assets has reached $1.2 billion.

Since its launch in 2021, BENJI has achieved the largest market capitalization in its category. Meanwhile, new entrants like Ondo Finance and BlackRock’s BUIDL fund, facilitated by Securitize, are also adopting peer-to-peer token transfer capabilities, enhancing their competitive edge in the market.”

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