More on Franklin MMF Tokenisation
The website DL News writes that, "Franklin Templeton sees 'vanilla' tokenisation funds matching $171bn stablecoin boom." The brief claims, "Stablecoins are one of crypto's biggest success stories, but they face growing competition from another kind of digital asset: tokenised money market funds. The key difference between the two products can be traced to how investors take advantage of federal interest rates, according to Roger Bayston, the head of digital assets at Franklin Templeton, a giant investment firm offering a tokenised money fund. 'A money fund offers yield to the users, rather than that yield being accrued to the stablecoin issuer,' Bayston told DL News." It continues, "Stablecoins are cryptocurrencies designed to stay on par with government-issued currencies like the US dollar. And there's significant demand for them, with the stablecoin market currently worth over $171 billion. The tokens issued by dominant stablecoin firms like Tether and Circle are backed one to one by dollar reserves.... But these firms don't simply keep their reserves lying around in cash. Rather, they invest them in short-term US Treasury bonds and make a profit from the yield.... Tokenised money market funds differ in that they allow crypto investors to gain exposure to an array of low-risk, short-term debt securities. Like stablecoins, money fund shares remain at a $1 valuation, but they provide yield on top of that." The article explains, "Franklin Templeton's Onchain U.S. Government Money Fund -- FOBXX for short -- provides holders with a 5.12% yield, which it earns through investments in various US treasury bills and Federal Home Loan Banks. The fund is worth $420 million, and its shares are represented onchain through Benji tokens. Each token is worth one share, and each share is worth $1. While FOBXX is available on a number of different networks -- Arbitrum, Avalanche, Stellar, Polygon -- investors can only gain exposure to it through Franklin Templeton's web portal and dedicated apps."
