Solana: US Money Market Fund Franklin Templeton Now Tokenized Available
The blockchain Solana receives reinforcement from the financial world: as of now, shares of a USD money market fund from Franklin Templeton are available in tokenized form on the Solana blockchain. Does this mean a breakthrough for Solana?
The Solana blockchain has been looking for ways to be recognized by the financial industry for years. Now, Solana has managed to get Franklin Templeton on board, paving a potential success with TradFi. Franklin Templeton manages assets typically in the range of $1.5 trillion and points to Solana in a press release. A USD money market fund named OnChain U.S. Government Money Fund has reportedly already been tokenized and is freely available to a wider investor base via Solana.
Details of the tokenized US Money Market Fund on Solana
The OnChain U.S. Government Money Fund is traded on the stock exchange under the abbreviation FOBXX. It is characterized by low risks and historically very moderate profits, which Franklin Templeton describes as “correctly balanced.” A noteworthy detail of the OnChain U.S. Government Money Fund is also its priority in financing for environmental, sustainable, and governmental (ESG) projects. More important in this context, however, is the recognition that Solana is being used in practice in serious financial traffic. Franklin Templeton is banking on blockchain technology, decentralized databases, and smart contracts to allow an unprecedented level of transparency and flexibility around its investments. These benefits are achieved with tokenized shares of the FOBXX fund, writes Franklin Templeton.
NFT projects on Solana are still reminiscent of the hype in the summer of 2021. Subsequently, Solana remained closer to the public but has struggled with downtime. Technical problems have done damage to the reputation of Solana and put off potential business partners. Moreover, Solana was seemingly closely entangled with the now-bankrupt crypto empire of FTX and Alameda. However, Solana worked through these issues internally and ventured into serious financial applications. Franklin Templeton has already shown that such projects can attract real money. A previous experiment called Autumn was based on tokenizing shares of a similar money market fund, the Beneli U.S. Government Money Market Fund, but ran on Stellar.
Conclusion on Solana and tokenization
The tokenization of shares has long been regarded as a lucrative future market for trustworthy blockchains. It is hardly surprising that Solana is making a big deal about its partnership with Franklin Templeton. So far, the world-renowned asset manager is of course only a first and important step. After FOBXX, Franklin Templeton talks about plans to tokenize other of its over 200 funds. Exciting developments await in Solana and other blockchains, which they will achieve through partnerships in the world of finance and beyond.
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