Franklin Templeton proposes shares issuance on Stellar blockchain
Franklin Templeton Trust, a U.S. based asset management company has filed a prospectus with the SEC (Securities and Exchange Commission) on September 3, 2019. According to the prospectus, Franklin Templeton Trust will issue the proposed ‘U.S. Government Money Fund’ shares on the Stellar network blockchain.
Franklin Templeton is a global investment firm and as of March 2017, it had US$740 billion in assets under management on behalf of private, professional and institutional investors.
Although the Fund’s transfer agent will maintain the official record of share ownership in book-entry form, the ownership of the Franklin Templeton Fund’s shares will also be recorded on the Stellar network.
Franklin fund’s investment manager believes that –
“blockchain-based shares will provide increased transparency to Fund shareholders and may, in the future, permit reduced settlement times and provide other benefits to Fund shareholders”.
The Fund would use the amortized cost method of valuation to maintain a stable $1.00 share price. The fund will invest at least 99.5% of its total assets in:
- U.S. government securities which may include fixed, floating and variable rate securities.
- Repurchase agreements where fund buys Government securities and sells back on an agreed-upon date (generally, less than seven days).
For investors convenience, Franklin Templeton will provide an App available for download through the Apple App Store and Google Play.
Upon the creation of an account through the app provided by Franklin Templeton, a Stellar blockchain wallet and corresponding public and private key pair will be created for each investor. Using the App, investors can easily purchase, redeem and monitor their shares.
