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08/21/2024

Franklin Templeton Expands Blockchain Fund to Avalanche Network

Franklin Templeton has expanded its pioneering blockchain-integrated money market fund to the Avalanche network, broadening access to digital finance for institutional investors. Franklin Templeton, a global asset management firm, has expanded its OnChain U.S. Government Money Fund to the Avalanche network. According to a press release sent to Cointelegraph, the expansion marks the "first onchain money market fund" on Avalanche. The fund, launched in 2021, allows institutional investors to access

Franklin Templeton Expands Blockchain Fund to Avalanche Network

Franklin Templeton has expanded its pioneering blockchain-integrated money market fund to the Avalanche network, broadening access to digital finance for institutional investors.

Franklin Templeton, a global asset management firm, has expanded its OnChain U.S. Government Money Fund to the Avalanche network.

According to a press release sent to Cointelegraph, the expansion marks the "first onchain money market fund" on Avalanche.

The fund, launched in 2021, gives institutional investors access to Franklin Templeton's blockchain-integrated recordkeeping system, Benji Investments.

"[Investors] may hold their wallets on the Avalanche network upon request and meeting eligibility requirements."

The Decision to Expand to Avalanche

Franklin Templeton's decision to expand to Avalanche builds on the firm's existing digital asset initiatives, reflecting its digital asset team's focus on blockchain technology since 2018.

In the press release, Ava Labs President John Wu said he was "excited" to see the fund expand to the Avalanche network:

"Franklin Templeton shares a common commitment to developing transformative digital financial products and services that meet the needs of today's onchain investors and bring offchain capital and users into the ecosystem tomorrow."

In a written interview with Cointelegraph, Wu explained the significance of the fund's expansion into the Avalanche ecosystem, describing it as a "foundational piece."

"Blockchain and tokenization allow traditional finance to reach people and businesses more easily, unlocking new capabilities that simply weren't possible through traditional means."

Franklin Templeton's ETF Filing

On August 16, the global asset management firm filed with the U.S. Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF).

The new ETF — the Franklin Crypto Index ETF — is designed to serve as a comprehensive crypto portfolio and track the performance of the CF Institutional Digital Asset Index.

Katalin Tischhauser, head of investment research at Sygnum, explained that index ETFs are the "logical next step" because "indices are efficient for investors."

Fund Launch on Arbitrum

On August 8, Franklin Templeton also announced the launch of the fund on Arbitrum, aiming to bridge traditional finance and decentralized finance.

Fund users on the Benji Investments platform can buy and hold tokenized shares of the fund on Arbitrum to generate low-risk investment yield.

With the addition of the Avalanche network to the fund's expansion efforts, Franklin Templeton now offers tokenized shares on Avalanche, Arbitrum, Stellar, and Polygon.