American asset management firm Franklin Templeton Investments has filed a preliminary prospectus with the United States Securities and Exchange Commission for a government money market fund with a focus on blockchain-based shares.
According to a Sept. 3 SEC filing, Franklin Templeton's fund will make investments in a range of products such as U.S. government securities, repurchase agreements, and blockchain-based shares.
The document notes that the fund will not invest in cryptocurrencies.
Franklin Templeton chose the Stellar network to record the ownership of the fund's shares.
The fund's investment manager ostensibly believes that blockchain-based shares will boost transparency and reduce settlement times, among other benefits to shareholders.
The document further explains that clients will be able to buy and redeem shares of the fund through a special app, wherein each investor will receive a blockchain wallet and a corresponding public and private key pair after the creation of an account.
It is said that the fund will invest at least 99.5% of its total assets in government securities, cash and repurchase agreements, all collateralized fully by government securities or cash.
This summer, major global firms including Stellar Foundation, Ethereum Foundation and Fidelity began supporting a new blockchain accelerator program called Startup Studio.
Stellar also partnered with IBM in an effort to create a real-time, controlled global payment network.
The deployment of Stellar protocol will purportedly allow IBM Blockchain World Wire to serve as a network provider for international payments.
Asset Management Giant Puts Government Money Market Fund on Stellar
Published on Sep 3, 2019
by Cointele | Published on Coinage
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