Financial asset manager giant Franklin Templeton is the latest merging legacy financial mechanisms with blockchain technology. This leading global asset management firm expanded its digital asset integrations by launching its OnChain US Government Money Fund (FOBXX) on the Arbitrum network.
Following this debut, Arbitrum network native token ARB has seen a significant surge in market price, adding to the overall bullish crypto prices today.
Government Money Fund On Arbitrum
As reported in a press release, Franklin Templeton’s latest collaboration with the Arbitrum Foundation aims to harness the “enhanced scalability and efficiency” of Arbitrum, currently one of the largest Ethereum Layer 2 solutions by total value locked.
With $2.6 billion in deposits and a 34% market share, Arbitrum is a leader in the Layer 2 space, particularly for its high number of daily active addresses compared to its competitors.
This partnership, as reported, highlights Franklin Templeton’s efforts to “leverage blockchain technology to enhance asset management capabilities, offering clients innovative avenues for investment.”
Franklin Templeton’s @FTI_DA OnChain U.S. Government Money Fund is now available on Arbitrum!
We’re excited to have access to the BENJI platform and see a major financial institution, Franklin Templeton, build on Arbitrum! pic.twitter.com/yrlwflYOow
— Arbitrum (
,
) (@arbitrum) August 8, 2024
The fund represented digitally via the BENJI token, is placed to expose investors to US government securities through a blockchain-enabled platform.
The Benji Investments platform facilitates transactions within digital wallets, promoting an integration of traditional and digital investment practices. Franklin Templeton Head of Digital Assets Roger Bayston particularly noted:
Expanding into the Arbitrum ecosystem is an important step on our journey to empower our asset management capabilities with blockchain technology. We are enthusiastic about the opportunities this will unlock for our firm and our clients.
According to the report, maintaining a stable share price of $1 and focusing primarily on government securities, FOBXX aims to deliver “considerable” returns while incorporating the “security and stability” associated with government-backed assets.
ARB Surges Nearly 10%
So far, ARB has increased 9.3% in the past 24 hours following the news. The asset trades for $0.53 at the time of writing, marking a notable surge from its lower price of $0.43 on Monday.
According to data from CoinGecko, not only ARB’s price has increased, the asset’s market cap valuation has also seen a more than $100 billion boost over the past day.
Interestingly, despite this notable development, ARB’s 24-hour trading volume hasn’t increased much, given the weight of the news. In the past day, this metric has only increased from roughly $270,927 to $288,552 at the time of writing.
Featured image created with DALL-E, Chart from TradingView