American asset manager Franklin Templeton has integrated its OnChain United States Government Fund (FOBXX) on Ethereum (ETH) layer-2 blockchain system Polygon.
Markedly, Polygon is the second blockchain that the funds is supporting as it had previously been made available on the Stellar blockchain as far back as 2021. According to a spokesperson from Franklin Templeton, more networks would be added in the future.
As per a statement by Roger Bayston, head of digital assets at Franklin Templeton “Extending the reach of the Franklin OnChain U.S. Government Money Fund to Polygon enables the Fund to be further compatible with the rest of the digital ecosystem, specifically through an Ethereum-based blockchain.”
FOBXX to Leverage Polyon $260B Market
The New York-based firm which boasts of $1.4 trillion in assets under management (AUM) plans to leverage Polygon’s $260 billion market.
“It’s amazing to have a legacy institution like Franklin Templeton bringing transparency, interoperability, and secure, democratized access to their financial instruments, all things afforded with Polygon,” Colin Butler, Global Head of Institutional Capital at Polygon Labs explained.
Apart from this, Franklin Templeton is also looking at expanding its distribution reach via a layer-2 blockchain. “This furthers our distribution reach through a Layer 2 (L2) blockchain that has a proven track record,” the spokesperson added.
Franklin Templeton Explores Blockchain-Integrated Systems
Franklin Templeton’s attraction towards blockchain-integrated systems is due to the high-end operational efficiencies which the firm has experienced over time.
Over time, the asset management firm has experienced increased security, faster transaction processing and reduced costs. Consequently, all of these efficiencies have benefitted all the Fund shareholders.
Documentation is one of the activities in which the company leverages a blockchain-based system to complete. The fund agent explores a proprietary blockchain-integrated system to keep the official record of share ownership.
Polygon Expands Partnerships With Other Systems
Meanwhile, Polygon as an ETH scaling solution has been gaining tangible recognition in the digital assets industry. In the blockchain gaming sector, it has received the badge of the second-largest platform. Decentralized application (DApp) analytics platform DappRadar noted a surge in the number of unique active wallets (UAWs) used on Polygon.
Also, the protocol is getting ready for the deployment of Uniswap V3 on the Zero Knowledge Ethereum Virtual Machine (zKEVM) rollup. This follows a favourable governance vote which exceeded 40 million.
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