Franklin Templeton Experimenting with “US Money Fund” Shares on Stellar Blockchain | Crowdfund Insider

Multibillion-dollar American investment firm Franklin Templeton has filed a prospectus with the SEC detailing a plan to use the Stellar Lumens blockchain for automated settlement of shares in a “US government money fund.”

The shares resemble “stablecoins” in that, “The Fund uses the amortized cost method of valuation to seek to maintain a stable $1.00 share price…” Franklin Templeton seeks to offer a government money market fund which typically is viewed as a safer investment that maintains value while generating a higher return than, perhaps, a savings account.

Stablecoins have emerged as a compelling use case for blockchain.

For example, troubled stablecoin tether has reportedly supplanted Bitcoin as the “remittance currency” of choice for Chinese exporters selling bulk wares in Moscow.

Franklin Templeton, known for mutual funds, may be trying to modernize operations with “blockchain,” which the prospectus describes as follows:

“In traditional blockchain networks, copies of the blockchain ledger are stored in a decentralized manner on computers across a peer-to-peer network. Users of the blockchain network maintain a copy of the ledger with all copies of the ledger synchronized through a consensus algorithm. Protocols included in the source code govern the rules, operations and communications of the underlying blockchain network, including the validation of new blocks that contain an updated ledger reflecting new transactions.”

In June, The Financial Times reported that shortselling hedgefunders were circling the company:

“Hedge funds have increased bets against Franklin Templeton to $1.2bn, as the US fund manager grapples with fundamental challenges to the business of asset management…The short sellers’ bets now account for 12 per cent of all of Franklin Templeton’s freely-available stock.”

FT suggested that Franklin Templeton may have been slow to respond to shifting investor preferences, something noticed by the…

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