Global asset management firm Franklin Templeton has launched its Benji blockchain-integrated system on Coinbase’s Layer 2 network, Base.
According to a post on X, Franklin Templeton is now the first asset manager to offer a tokenized fund on Base. This move shows the company’s commitment to using blockchain technology in traditional finance.
Details on Franklin Templeton’s Benji Fund
The Franklin Templeton OnChain Benji Fund is a stable investment fund based on blockchain technology. It invests in low-risk assets backed by the government and allows investors to use tokens representing a traditional money market fund.
Tokenization means turning fund shares into digital tokens on the blockchain. This change provides better transparency, faster transactions, and more access for a wider range of investors. Unlike traditional funds that use intermediaries, tokenized funds run on smart contracts. As such, the Benji Fund focuses on security and stability. This approach attracts diversity from both retail and institutional investors.
Notably, the Fund is overseen by the U.S. Securities and Exchange Commission (SEC). It stands out because it combines blockchain technology with traditional regulations. Benji tokenized funds allow investors to access their money easily.
Why Base is the Perfect Chain for Franklin Templeton’s Benji Fund
Choosing Base as its hosting network for the Benji fund is considered a smart decision. Base is a Layer 2 network created by Coinbase to improve Ethereum’s speed and lower transaction costs.
Base uses Optimistic Rollup technology, which boosts efficiency while keeping Ethereum’s security and decentralization. These features make it a good choice for asset managers like Franklin Templeton, who need a reliable and secure network.
Meanwhile, Franklin Templeton will reach many potential investors who already understand blockchain technology. Base has strong support from developers and a growing ecosystem of users.
The protocol is becoming a hub for Decentralized Finance (DeFi) applications focusing on efficiency, security, and interoperability. This matches Franklin Templeton’s goals of using blockchain for innovation while ensuring regulatory compliance and investor protection.
The investment manager recently launched its Franklin OnChain U.S. Government Money Fund (BENJI) on Avalanche. This expansion marked the fund’s third blockchain network integration, following earlier launches on Stellar and Polygon POS.
Intriguingly, the move broadens the access to tokenized U.S. treasuries, maintaining a stable $1 share price.
Tokenized Treasuries Gaining Momentum
BlackRock, the world’s largest asset management firm, is demonstrating outstanding performance in the crypto space. The firm’s tokenized fund, BlackRock USD Institutional Digital Liquidity (BUILD), played a key role in the 2024 tokenized treasury market value.
Within six weeks of its launch, the offering has outperformed similar products. In May, it had gained a market cap of $375 million.
At the time, this exceeded the market cap of a year-old Benji Fund, which had a locked valuation of $368 million.
So far, FalconX and Hidden Road, two of the biggest crypto prime brokers, have authorized the use of BUIDL as collateral for their clients. BUIDL has attracted more institutional funds than its counterparts, including FOBXX, OUSG, USDY, and USTB.
More players are becoming active in the tokenization scene. Binance Labs invested in OpenEden to help tokenize real-world assets, including US Treasury Bills, via its TBILL product. OpenEden’s TBILL offers daily liquidity and regulated returns, targeting institutional investors like DAOs.
The platform provides end-to-end tokenization solutions, reducing costs while increasing transparency and liquidity for investors.
