Stellar Network Partners with $700 Billion USD Asset Management Firm, Franklin Templeton

    A $700 billion asset management firm aims to use the Stellar Network to record its money market fund shares in its latest filing with the SEC. The prospectus is still under review with the securities commission.

    The U.S Securities and Exchange Commission (SEC) received a preliminary prospectus from a multi-billion asset management company that aims to record its shares on the Stellar blockchain.

    In the filing, Franklin Templeton Trust, who manage over $700 billion in assets, will use the blockchain as a test recording ledger – the transfer agent records will still prevail as the main record. The prospectus reads,

    “Although the Fund’s transfer agent will maintain the official record of share ownership in book-entry form, the ownership of the Fund’s shares will also be recorded on the blockchain. “

    ‘A Permanent Record of Money Market Fund Shares’

    The prospectus explains the Stellar Network will be used to verify, authenticate and record transfers and transactions.

    Once recorded, every participant owning the shares will be broadcasted to the network, ensuring accountability and transparency in the issuance process. In case of a conflict, the agent’s transfer records will be the point of reference. The announcement reads,

    “However, in the event of a conflict between the blockchain record and the record held by the transfer agent, the transfer agent’s record will be determinative.”

    Due to the verification and authentication process, blockchains may have time delays in confirmations which may cause the discrepancy with the transfer agent’s record. The prospectus further warns its investors on the challenges of blockchain.

    “The use of distributed ledger technology is untested for mutual funds.”

    The company will not be investing in any cryptocurrency. The company is seeking a $1 net asset value (NAV) on the share, with most of the assets placed in government securities, repos and cash. Each money market share will be sold at $20 USD.

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    Lujan Odera
    Lujan Odera
    Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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