Franklin Templeton [NYSE: BEN] has introduced a pioneering feature on its Benji Investments platform that allows users to convert USDC stablecoins directly into U.S. dollars. This service facilitates the purchase of shares in the Franklin OnChain UGC Money Fund (FOBXX), represented by “BENJI tokens.”
Utilizing the services of Zero Hash, a crypto and stablecoin infrastructure platform, investors can now easily convert USDC to USD. This conversion is seamlessly integrated into the investment process, where the converted funds are transferred to investors’ Franklin Templeton accounts to acquire BENJI tokens.
This facility is initially available to specific institutional wallets, with plans to extend this capability to individual investors through the Benji Investments mobile app in the near future.
Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasized the seamless investment process enabled by this integration. “By offering an on-ramp to buy BENJI tokens with USDC, we provide a streamlined method for investors to access our tokenized money market fund, which combines the price stability of a stablecoin with the potential for yield accrual,” Bayston explained.
The Franklin OnChain U.S. Government Money Fund, launched in 2021, stands out as the first U.S.-registered fund employing a public blockchain as its transaction and share ownership record system.
Primarily investing in government securities and cash, the fund adheres to the rigorous regulations of the 1940 Act, aiming to maintain a stable share price of $1.00 while maximizing income and ensuring shareholder capital and liquidity preservation.
In April 2024, Franklin Templeton further enhanced the functionality of the BENJI tokens by enabling peer-to-peer share transfers among institutional investors on the blockchain.
The California-based global investment management firm has over $1.6 trillion in assets under management as of April 30, 2024.
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