BREAKING: Top Asset Manager to Launch Groundbreaking Mutual Fund on Solana

Franklin Templeton, the asset management giant with $1.5 trillion in assets, is set to launch a mutual fund on the Solana blockchain.

This announcement was made by Mike Reed, the firm’s Partnership Development lead, during the Solana Breakpoint 2024 event in Singapore.

Reed explained that the decision to create an on-chain money market fund stems from the need for operational efficiency in financial services. The firm aims to harness blockchain technology to facilitate a high volume of transactions, making the fund more integrated into the transactional economy.

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Interestingly, Franklin Templeton opted to develop its own infrastructure rather than outsource the tokenization process. This led to the creation of a digital wallet system and on-chain transfer mechanisms, allowing for a seamless blockchain experience.

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Initially, the fund struggled to attract interest due to low interest rates, but as rates began to rise, demand grew, particularly from venture capital firms looking for innovative treasury management solutions.

Highlighting the advantages of Solana, Reed noted its speed, cost-effectiveness, and superior development tools. He emphasized that token ownership would be fully on-chain, eliminating the need for off-chain records. Franklin Templeton, which recently launched Bitcoin and Ethereum ETFs, remains optimistic about future opportunities on the Solana platform.

Alexander Stefanov