Franklin Templeton Investments, an American asset management company, has filed a preliminary prospectus with the United States Securities and Exchange Commission (SEC) for a government money market fund with a focus on blockchain-based shares.
As per September 3 SEC filing, Franklin Templeton’s fund will make investments in a variety of products like U.S. government securities, repurchase agreements, and blockchain-based shares. In any case, the filing underscores that the fund will not invest in digital assets.
Franklin Templeton has selected the Stellar network to record the proprietorship of the fund’s shares. The fund’s investment manager trusts that blockchain-based shares will boost transparency and decrease settlement times, among other benefits to shareholders.
The document further clarifies that customers will be able to purchase and redeem shares of the fund through a unique app, where each investor will get a blockchain wallet and a matching pair of public and private keys after registering for an account.
It stated that the fund would invest at least 99.5% of its total assets in government securities, cash, and repurchase agreements, all entirely collateralized by government securities or cash.
This summer, major worldwide companies such as the Stellar Foundation, Ethereum Foundation, and Fidelity started backing Startup Studio, a new blockchain accelerator program. The initiative is set up to offer workshops to blockchain startups to assist them in improving product design, law, and engineering, smart contract development, finance, and hiring — among others.
Stellar also collaborated with IBM in an initiative to make a real-time, controlled worldwide payment network. The deployment of Stellar protocol will reportedly permit IBM Blockchain World Wire to serve as a network provider for global payments.