Franklin Templeton, a large investment company that manages $ 700 billion worth of assets, intends to launch a fund for short-term investments, whose shares will be tokenized on the Stellar blockchain. The corresponding provisional application is published on the website of the US Securities and Exchange Commission (SEC).
According to the document, the fund will invest at least 99.5% of the assets under its management in government securities, cash and repurchase agreements fully secured by government securities or cash.
The document also states “the ownership of the Fund’s shares may be maintained and recorded solely on the Stellar network." Franklin Templeton expects that the use of the blockchain will increase transparency and reduce settlement time, however, the initiative remains in test mode and can be liquidated at any time by the decision of the company.
As part of the creation of the fund, a mobile application will be developed that will allow investors to purchase and redeem tokenized shares directly from the company, as well as track the balance in the Stellar blockchain.
It is noted that after registration in the application, an individual wallet will be created for each investor.