Franklin Templeton to Enable Money Fund Shares on Stellar Network

Global investment fund Franklin Templeton Investments filed a preliminary prospectus with the United States Securities and Exchange Commission (SEC) for a money market fund where shares would be recorded and tokenized on the Stellar Network.   

Franklin Templeton Investments is based in California, ranking in the top 35 in terms of mutual fund managers, and has over $700 billion in assets under management.   

The fund would not be investing in any cryptocurrencies or crypto-related projects. At least 99.5% of the fund’s assets under management will be invested in government securities, cash and repurchase agreements which are fully collateralized by government securities or cash.   

The prospectus states: “the ownership of the Fund’s shares may be maintained and recorded solely on the Stellar Network.” Investments will be in not be in cryptocurrencies, but rather in “blockchain-based shares.” The prospectus also mentions that Franklin Templeton believes that blockchain-based shares can provide transparency for shareholders, although giving warning that they come with their own risks.   

Along with the creation of the fund, Franklin Templeton reportedly will also develop a mobile app aimed to allow investors to purchase and redeem tokenized shares on the government money market fund directly from the firm, available on Apple App Store and Google Play.  

Images via Shutterstock