Stellar Lumens News Today – The Stellar blockchain has multiple use cases. Just like Ethereum, it can be used to host tokens and smart contracts. Recently, Franklin Templeton announced that it wants to start a project that would involve the use of the Stellar blockchain for its investments. Keep in mind that Franklin Templeton is one of the biggest investment funds in the world. The tokens of its new Money Market fund will be hosted on the Stellar blockchain.
Stellar Blockchain To Host Tokens For Franklin Templeton Investments Money Market Fund
Templeton Investments, which current has over $700 billion in assets, has decided to dive into the cryptocurrency space by exploring the Stellar blockchain for a new Money Market fund. According to sources familiar with the matter, the company has filed a prospectus with the United States Securities Exchange Commission in a bid to get the regulatory approval it needs for this fund.
People who buy shares from the fund will exercise ownership through tokens on Stellar’s network. The main purpose of using blockchain technology is to ensure transparency and improve performance. There will be a mobile application for the money market fund allowing investors to view their portfolios and make investments at any time.
According to the announcement, 99.5% of the inflows will be invested in physical government-related assets which will be collateralized by cash or government. Each investor will be able to create accounts that are backed by cryptographic keys which they will use to access their wallets and the assets will sell for $1 per share. There is a minimum investment limit of $20.
Apart from using tokens on the Stellar blockchain, the firm will also use the blockchain for record keeping as a backup to its traditional methods. This move by Templeton is a big deal for the cryptocurrency industry because it is going to create additional exposure for the blockchain space and not just Stellar. While the token to be used isn’t the XLM token, the move is still promising for the Stellar network.
This isn’t the first foos news the Stellar network is getting this year. Not too long ago, the Stellar Development Foundation, in partnership with Fidelity and the Ethereum Foundation, funded a blockchain accelerator program known as Startup Studio. The goal of this program is to promote blockchain businesses across the globe.