Investors may now use USDC to fund their accounts to purchase shares in the first and only U.S.-registered mutual fund to process transactions and record ownership on a public blockchain
SAN MATEO, Calif.--(BUSINESS WIRE)--Franklin Templeton today announces that users on the Benji Investments platform can convert USDC stablecoin to U.S. dollars (“USD”) to fund their investment in shares of the Franklin OnChain U.S. Government Money Fund (FOBXX) (the “Fund”). One share of the Fund is represented by one “BENJI token.”
USDC to USD conversion services are provided by Zero Hash, a crypto and stablecoin infrastructure platform that supports over 60 digital assets across a multitude of blockchains. Zero Hash conversion services allow investors to convert USDC to USD, which in turn is transferred to their Franklin Templeton account and used to seamlessly purchase BENJI tokens. Investors in the Fund may also use Zero Hash services to convert USD proceeds from the sale of BENJI tokens to USDC.
The feature will be immediately available to certain institutional wallets on the Benji Investments platform and shareholders of the Fund may initiate conversions at any time. USDC conversion services for individual investors using the Benji Investments mobile app may be enabled in the future.
“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,” said Roger Bayston, Head of Digital Assets at Franklin Templeton. “This is an exciting step in our continued journey to make the digital assets ecosystem more accessible to both traditional and blockchain-native investors. We are also building the framework for BENJI tokens to be interoperable with additional tokens in the not-too-distant future.”
The Franklin OnChain U.S. Government Money Fund was launched in 2021 and is the first and only U.S.-registered fund to use a public blockchain as the system of record to process transactions and record share ownership. The Fund offers a competitive yield and is a regulated 1940 Act fund that invests at least 99.5 percent of its total assets in government securities, cash and repurchase agreements collateralized fully by government securities or cash. The Fund’s investment objective is to provide investors with as high a level of current income as is consistent with the preservation of shareholders’ capital and liquidity and aims to maintain a stable $1.00 share price. In April 2024, Franklin Templeton announced that institutional BENJI token holders now have the ability to transfer shares from one shareholder to another shareholder (“peer-to-peer”) on the public blockchain.
Individual investors can gain exposure to the Fund in digital wallets through the Benji Investments app, available in mobile app stores for Android and Apple devices. Institutional investors can gain exposure through the Benji Institutional web portal.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.6 trillion in assets under management as of April 30, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.
You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress. Although the fund invests in U.S. government obligations, an investment in the fund is neither insured nor guaranteed by the U.S. government.
All investments involve risk, including loss of principal. There are risks associated with the issuance, redemption, transfer, custody, and record keeping of shares maintained and recorded primarily on a blockchain. For example, shares that are issued using blockchain technology would be subject to risks, including the following: blockchain is a rapidly-evolving regulatory landscape, which might result in security, privacy or other regulatory concerns that could require changes to the way transactions in the shares are recorded. The fund's yield may be affected by changes in interest rates and changes in credit ratings. These and other risks are discussed in the fund’s prospectus.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial professional, call us at (800) DIAL BEN/342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.
Zero Hash Disclosures
Zero Hash services and product offerings may not be available in all jurisdictions. Zero Hash accounts are not subject to FDIC or SIPC protections, or any such equivalent protections that may exist outside of the U.S. Zero Hash’s technical support and enablement of any asset is not an endorsement of such asset and is not a recommendation to buy, sell, or hold any crypto asset. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero. Zero Hash is not registered with the SEC or FINRA. Zero Hash does not provide any securities services and is not a custodian of securities, including security tokens, on behalf of customers.
On and off ramping of USDC services for the Benji Investments platform are not currently available to New York persons.
Copyright © 2024. Franklin Distributors, LLC. Member FINRA/SIPC. All rights reserved.
Contacts
Franklin Templeton Corporate Communications:
Travis Fishstein, (917) 822-1857, travis.fishstein@franklintempleton.com