Franklin Templeton Eyes New Crypto Fund, Bolsters Investment Options with USDC Stablecoin
Summary:
Franklin Templeton, an asset management firm, is contemplating the launch of a cryptocurrency fund for institutional investors extending beyond Bitcoin and Ether. The new private fund would allow investors to stake in alternative cryptocurrencies, with staking rewards included. The company has not yet revealed the specific cryptocurrencies that will be included. Franklin Templeton, which manages $1.64 trillion in assets as of March 2024, also announced a new feature on its Benji Investments platform that allows investors to use USD Coin (USDC) stablecoin for investments in the Franklin OnChain U.S. Government Money Fund (FOBXX).
Franklin Templeton, an asset management firm, is examining the potential of initiating a cryptocurrency fund for institutional investors that would engage with more than just Bitcoin (BTC) and Ether (ETH). As per a report by The Information on June 6, the mutual fund is believed to be contemplating a private fund for aiding institutional investors to engage with superior cryptocurrencies. The prospective scheme is touted to offer staking rewards, though specifics on which cryptocurrencies will be integrated are yet to be disclosed. Nevertheless, the firm has highlighted Solana network's growth in 2024. Insights from Messari, an analytic company, indicate that Solana's spot decentralized exchange volume soared by 319%, reaching $1.5 billion in Q1 2024 from its preceding quarter's figures. As of March 2024, Franklin Templeton commands a hefty $1.64 trillion in assets, making it one of the most prominent investment management institutions worldwide. Being an active participant in the cryptocurrency sector, it has a variety of funds, including a reputable Bitcoin exchange-traded fund (ETF) launched in the first month of 2024 and a recently approved Ether spot ETF by the U.S. Securities and Exchange Commission, which awaits launch clearance. The firm expressed its optimism towards Ether's prospects highlighting the favorable conditions in an article on X. On June 6, a novel feature was declared on Benji Investments platform operated by Franklin Templeton that empowers investors to utilize USD Coin (USDC) stablecoin for investments in Franklin OnChain U.S. Government Money Fund (FOBXX). This fund was the maiden U.S. registered mutual fund to execute transactions and authenticate ownership via a public blockchain, where every share is epitomized by the BENJI token. The conversion process will be enabled by the Zero Hash, a platform for cryptocurrency and stablecoin infrastructure. At present, Franklin Templeton oversees $357 million in assets through its money market fund, as per data from Dune Analytics.
Published At
6/6/2024 8:58:58 PM
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