Financial asset management giant Franklin Templeton is the latest company to merge ancient financial mechanisms with blockchain technology. The global leader in asset management Expanded Integrating its digital assets by launching the US Government Fund OnChain (FOBXX) on the Arbitrum network.
Following this debut, the Arbitrum Network’s native cryptocurrency ARB saw a significant surge in market price, adding to today’s overall bullish cryptocurrency price.
Government Fund in Arbitration
As stated in a press release, Franklin Templeton’s latest collaboration with the Arbitrum Foundation aims to leverage the “improved scalability and efficiency” of Arbitrum, which is currently one of the largest Ethereum Layer 2 solutions in terms of total value locked.
With $2.6 billion in deposits and 34% market shareArbitrum is a leader in the layer 2 space, especially with its high number of daily active addresses compared to its competitors.
The partnership, as reported, highlights Franklin Templeton’s efforts to “leverage blockchain technology to enhance asset management capabilities and offer clients innovative ways to invest.”
Franklin Templeton @FTI_DA US Government Money Fund OnChain is now available on Arbitrum!
We are excited to be able to access the BENJI platform and see a major financial institution, Franklin Templeton, adopt Arbitrum!https://t.co/CRWCFyz3NM pic.twitter.com/yrlwflYOow
– Decision (,
) (@judgment) August 8, 2024
The fund is digitally represented via the BENJI token, and is designed to introduce investors to U.S. government securities through a blockchain-powered platform.
Benji Investments’ platform facilitates transactions within digital wallets, enhancing the integration of traditional and digital investment practices. Franklin Templeton’s Head of Digital Assets, Roger Baystone, specifically noted:
Expanding into the Arbitrum ecosystem is an important step in our journey to enhance our asset management capabilities using blockchain technology. We are excited about the opportunities this technology will open up for our firm and our clients.
By maintaining a stable share price of $1 and focusing primarily on government securities, FOBXX aims to generate “significant” returns while incorporating the “security and stability” associated with government-backed assets, according to the report.
ARB shares up nearly 10%
So far, ARB’s price has risen 9.3% in the past 24 hours following the news. The asset is trading at $0.53 at the time of writing, marking a significant increase from its low of $0.43 on Monday.
according to Data According to CoinGecko, not only has the price of ARB increased, but the market cap of the asset has also seen an increase of over $100 billion over the past day.
Interestingly, despite this notable development, ARB’s 24-hour trading volume has not increased much, given the weight of the news. Over the past day, this metric has only increased from around $270,927 to $288,552 at the time of writing.
Featured image created using DALL-E, chart from TradingView