How Franklin Templeton’s $800 Million Tokenised Fund is Spurring Its Blockchain Strategy

Franklin Templeton, a major asset management firm, launched the first-ever tokenised fund in 2021 to incorporate blockchain into its business model. The firm’s $5 billion Government Money Fund, FOBXX, initially issued on the Stellar blockchain, has served as a testing ground for crypto initiatives. Innovation head Sandy Kaul envisions global public blockchains as future financial utilities. Franklin Templeton has since extended its operations to Ethereum and other blockchains, developing new features like a daily yield distribution. Despite being ahead in the tokenisation race with nearly $800 million raised, regulatory uncertainties remain a hurdle. The development is particularly relevant to Stellar, as the initial tokenisation took place on its blockchain.