Franklin Templeton has unveiled a new feature on its Benji Investments platform, allowing users to convert USDC stablecoin to U.S. dollars for investment in the Franklin Onchain U.S. Government Money Fund. The conversion services are provided by Zero Hash, which supports a wide range of digital assets on various blockchains.
This development streamlines the purchase of BENJI tokens and enables the conversion of U.S. dollar proceeds back to USDC, the second-largest stablecoin by market capitalization. The fund, launched in 2021, was the first U.S.-registered mutual fund to utilize public blockchain technology for transactions and share ownership recording.
The initiative by Franklin Templeton aims to enhance accessibility for both traditional and blockchain-native investors, with potential future expansions to include individual investors on the platform. The Franklin Onchain U.S. Government Money Fund primarily invests in government securities, cash, and fully collateralized repurchase agreements.
With a stable $1 share price, the fund offers a competitive yield while preserving capital and liquidity. In April 2024, the fund introduced peer-to-peer transfers for institutional BENJI token holders on the blockchain, further integrating digital assets and traditional finance. Blackrock also recently launched a tokenized fund called BUIDL, which leverages U.S. government bonds.
Franklin Templeton's Head of Digital Assets, Roger Bayston, explained that the USDC conversion simplifies access to BENJI tokens. He stated, "By offering an on-ramp to buy BENJI tokens with USDC, we provide a seamless method for investors to access our tokenized money market fund, which is a registered fund that provides the price stability characteristics of a stablecoin while also accruing yield."
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