Financial asset management giant Franklin Templeton is the latest merger of 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.
After this debut, Arbitrum ARB network native token saw a significant increase in market price, adding to the overall bullish prices of crypto today.
Government Money Fund in Arbitration
As reported in a press release, Franklin Templeton’s latest collaboration with the Arbitrum Foundation aims to leverage Arbitrum’s “enhanced scalability and efficiency,” currently one of the largest Ethereum Layer 2 solutions by total value locked.
With US$2.6 billion in deposits and 34% market shareArbitrum is a leader in the Layer 2 space, primarily due to 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 @FTI_DA The OnChain US Government Money Fund is now available on Arbitrum!
We are excited to have access to the BENJI platform and see a major financial institution, Franklin Templeton, building on Arbitrum!https://t.co/CRWCFyz3NM pic.twitter.com/yrlwflYOow
– Arbitration (,) (@arbitrum) August 8, 2024
The fund digitally represented through the BENJI token is positioned to expose investors to US government bonds 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 in our journey to empower our asset management capabilities with blockchain technology. We are excited about the opportunities this will open up for our firm and our clients.
According to the report, by maintaining a stable share price of $1 and focusing primarily on government bonds, FOBXX aims to deliver “considerable” returns while incorporating the “safety and stability” associated with government-backed assets.
ARB rises almost 10%
So far, ARB has increased by 9.3% in the last 24 hours following the news. The asset is trading at $0.53 at the time of writing, marking a notable increase from its lowest price from $0.43 on Monday.
According to data From CoinGecko, not only has the price of ARB increased, the asset’s market cap valuation has also seen an increase of over $100 billion in the past day.
Interestingly, despite this remarkable development, ARBs Trading volume over the past 24 hours has not increased much given the weight of the news. In the last day, this metric has only increased from approximately $270,927 to $288,552 at the time of writing.
Featured image created with DALL-E, chart from TradingView