Franklin Templeton Steps Up Investment in Blockchain


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Major U.S. asset management company Franklin Templeton has submitted an application to the U.S. Securities and Exchange Commission (SEC) for registration of a new Blockchain Fund II.

Although the company has been involved in the deployment of virtual currency management accounts (SMAs) and on-chain US government money funds, this is the first time it has stepped into private equity investment in blockchain technology.

The size of the “Franklin Templeton Blockchain Fund II” has not yet been announced, but the minimum investment amount is said to be about 13 million yen ($100,000). This is set lower than typical private equity investments and is designed to allow more investors to participate. The fund also plans to complete funding from institutional investors within 12 months.

A private equity fund is an unlisted investment fund that aims to pursue profits through IPOs and sales after the company’s value has improved. It raises funds from a limited number of institutional investors and wealthy individual investors and invests them in private market business companies, real estate, venture capital, etc.

The cryptocurrency market is on an upward trend in 2023, and it can be said that Franklin Templeton’s move to establish a blockchain-related private equity fund reflects the trend of the entire market. In other words, as the demand for investment in virtual currency and blockchain technology is increasing, it is thought that the company is trying to meet that demand by providing new investment products.

connection:Franklin Templeton Expands US Government Money Fund to Polygon

Who is Franklin Templeton

Franklin Templeton is a global investment management firm with services in more than 155 countries around the world. It operates in a variety of fields including equities, fixed income, multi-asset solutions and alternative investments. The company has approximately $1.5 trillion in assets under management (as of the end of 2021) and offers mutual funds, pensions, and individual investor services.

The company has been actively expanding into the cryptocurrency market. In April 2021, we will launch an on-chain US government money fund (FOBXX) that will operate on the Stellar (XLM) blockchain. Furthermore, in April of this year, it announced support for the virtual currency Polygon (MATIC).

One share of FOBXX is represented as one BENJI token on the blockchain and can be traded 24 hours a day, 365 days a year. As of the end of March 2023, the balance of assets under management (AUM) exceeds approximately 36.1 billion yen ($270 million).

In addition, Franklin Templeton announced in September 2022 that it plans to offer cryptocurrency management accounts (SMAs) for institutional investors. These are two types of SMA accounts that manage and operate digital assets, including cryptocurrencies, and are scheduled to be offered to U.S. investors from mid-October of the same year on the SEC-registered digital asset SMA provider management platform Eaglebrook Advisors. .

What is SMA (Separately Managed Account)?

An SMA (Separately Managed Account) is an entity in which an investor entrusts a certain amount of funds to a service provider such as a securities company for asset management and operation. The main features of SMA are that it provides comprehensive services such as advice on asset allocation, introduction of investment management companies and investment trusts, execution of orders, and regular reporting to customers, and comprehensively manages assets. It can be said that it is a dedicated account. (SMBC Nikko Securities)

Cryptocurrency Glossary

connection:Franklin Templeton to Offer Cryptocurrency Accounts for Institutional Investors

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