Franklin Resources Inc. is an American holding company that, together with its subsidiaries, is referred to as Franklin Templeton Investments. It is a global investment firm founded in New York City in 1947 with nearly $700B in assets under management.
The firm has filed a preliminary prospectus with the Securities and Exchange Commission (SEC) for a government money market fund whose shares will be tokenized on the Stellar network. The fund is going to invest at least 99.5% of its assets under management in government securities, cash, and will also repurchase agreements that are fully collateralized by government securities or cash. (In normal circumstances it invests 80%).
Blockchain-based shares | No crypto Investment
Although the Fund’s transfer agent will maintain the official record of share ownership in book-entry form, the ownership of the Fund’s shares will also be recorded on the Stellar network. Notably, it will also make investments in “blockchain-based shares” but not cryptocurrencies.
At present shares of the Fund are not available for purchase, sale or transfer from one shareholder to another shareholder on the blockchain or in any secondary trading market. The Fund’s investment manager believes that with the launch of blockchain-based shares, the firm will provide increased transparency to Fund shareholders and may, in the future, permit reduced settlement times and provide other benefits to Fund shareholders.
Mobile App for Greater Efficiency
As part of the creation of the fund, Franklin Templeton will also develop a mobile app which will be available in the Apple App Store and Google Play. This app enables investors to purchase and redeem the tokenized shares on the government money market fund directly from the firm and also monitor the balance of the shares on the public Stellar blockchain. Upon the creation of an account through the App, a blockchain wallet and a corresponding public and private key pair will be created for each investor.
Investors will be provided with the public key for their wallets, and they will be able to track the balance of any Fund shares in their wallets through the App as well as on a public “block explorer” tool capable of displaying activity on the Stellar network.