Altcoin
Franklin Templeton is evaluating a new altcoin fund for cryptocurrencies
Franklin Templeton is one of the largest asset management firms in the world. FranklinTempletonTV YouTube | The inspiration behind our brand, Benjamin Franklin FranklinTempletonTV YouTube Channel/Screenshot
KEY POINTS
- A new report has revealed that the asset manager is considering staking rewards for the altcoin fund
- Franklin Templeton announced on Thursday a new feature that allows Benji investors to use USDC for FOBXX financing
- The asset management giant is an issuer of BTC spot ETFs and has requested ETH spot ETFs
Asset management giant Franklin Templeton is reportedly considering launching a new digital asset fund, and this time, the fund will invest beyond the largest cryptocurrencies, Bitcoin and Ether.
The trillion-dollar asset manager is exploring the possible creation of a digital asset fund that it could offer to institutional investors exposure to altcoins, the Information reported Thursday, citing people with direct knowledge of the matter. Altcoins are alternative tokens to Bitcoin, the world’s first decentralized cryptocurrency and also the largest digital asset by market value.
The report also notes that the altcoin-focused fund will offer staking rewards, but it is unclear which specific altcoins the asset manager is considering for the fund. On the other hand, it has made several moves around the Solana network and the US dollar currency (USDC).
He praised the Solana blockchain for its impressive activity during the fourth quarter of 2023, saying he sees the network as “Anataloy’s vision of a single atomic state machine as a powerful use case for decentralized blockchains.”
On Solana, we see Anatoly’s vision of a single atomic state machine as a powerful use case for decentralized blockchains, reducing information asymmetry. And we’re impressed with all the activity seen on Solana in Q4 2023
-DePIN
-DeFi
– Meme coins
-NFT innovation
-Fire Dancer— Franklin Templeton (@FTI_US) January 17, 2024
Just Thursday, the financial giant unveiled a new feature for investors on its Benji Investments platform that will allow them to use the USDC stablecoin to fund investments in Franklin OnChain US Government Money Fund (FOBXX), which is the first registered mutual fund in the United States to record and process transactions through a public blockchain.
Franklin Templeton has assets under management (AUM) of approximately $1.6 trillion and has dabbled in the cryptocurrency space for several years. It was among the issuers that launched a spot BTC exchange-traded fund (ETF) in January and also applied for a spot Ether (ETH) ETF.
The wealth management giant has been in the financial industry for about 77 years and recently Recognized Bitcoin ordinals for their role in promoting engagement in the Bitcoin community.
News of Franklin Templeton’s alleged plans for an altcoin fund comes at a critical time in the cryptocurrency industry following the 19b-4 approval of Ether spot ETFs late last month. Many in the cryptocurrency industry believe the approvals are a catalyst for bigger things in the burgeoning industry.
The San Mateo-based multinational was among at least five Ethereum ETF applicants who applied modified documents to the U.S. Securities and Exchange Commission (SEC) after the Wall Street regulator made comments on the proposals for the funds.