Franklin Templeton has tokenized a $380 million treasuries fund on the Polygon and Stellar blockchains to facilitate peer-to-peer (P2P) transfers without intermediaries.

The launch of the Franklin OnChain United States Government Money Fund (FOBXX) introduces BENJI tokens, each representing a share of the fund, tradable on the public Polygon and Stellar blockchains. This advancement simplifies transactions and broadens access for investors, enabling more flexible asset management through direct exchanges.

Blockchain integration enhances liquidity and efficiency in asset management for Franklin Templeton, meeting the increasing demand from financial institutions to merge traditional structures with modern technology solutions.

The tokenization of government securities and other assets signifies a significant step forward in digital asset management, offering improved transparency, security, and efficiency.

BlackRock’s BUIDL

Franklin Templeton’s move puts them in direct competition with BlackRock’s tokenization efforts, specifically their BUIDL fund on Ethereum in collaboration with Securitize. The BUIDL fund focuses on tokenizing US Treasuries to provide investors with a secure and efficient way to invest in government-backed securities through blockchain technology. Leveraging Ethereum ensures strong security features and wide compatibility with digital wallets and trading platforms.

The introduction of the BUIDL fund has attracted investors looking for innovative ways to diversify portfolios and manage assets with transparency and faster transactions. Despite rapid attention for BlackRock, Franklin Templeton holds a 32% market share in the tokenized US Treasuries sector.