The Stellar blockchain has announced massive adoption news. The first U.S.-registered fund to use a public blockchain to process transactions and record share ownership is now available on the Stellar network.
In a tweet, Stellar discloses that Franklin Templeton's OnChain U.S. Government Money Fund (FOBXX) is now available on the network through the Benji Investments app. According to a press release, this is the first U.S.-registered mutual fund to use public blockchain technology for transactions and share ownership on the Stellar blockchain.
📢 Big news! Franklin Templeton's (@FTI_DA) OnChain U.S. Government Money Fund is now available on the Stellar network through the Benji Investments app. The first mutual fund to use public blockchain technology for transactions and share ownership. https://t.co/LAbSwSS7MU— Stellar (@StellarOrg) April 24, 2023
Per the announcement, the fund's transfer agent maintains the official record of share ownership via a proprietary blockchain-integrated system that currently utilizes the Stellar blockchain network for transaction activity.
Stellar also revealed an exciting milestone for the first registered U.S. fund on its network, which surpassed $270 million in assets under management (AUM).
The development is significant as it shows the potential for greater interoperability in the financial system by reflecting a considerable integration between blockchain technology and traditional financial institutions.
The on-chain U.S. Government Money Fund from Franklin Templeton is a 1940 Act fund that invests at least 99.5% of its total assets in cash, government securities and repurchase agreements collateralized fully by government securities or cash.
Earlier in the month, Stellar-enabled digital wallet Decaf announced an integration with the global on/off-ramp service for digital wallets powered by MoneyGram and the Stellar Development Foundation (SDF).
Through this integration, Decaf users will be able to transition between cash and digital currency.