American asset management giant Franklin Templeton is planning to launch a government securities investment fund built on the Stellar Network.
The firm, which has $717 billion in assets under management, has submitted a preliminary statement on the fund to the SEC describing how it will utilize Stellar’s distributed ledger.
“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 Stellar network, an electronic distributed ledger that is secured using cryptography (referred to as a ‘blockchain’).
A blockchain contains a digital record or ledger of transaction data that is permanently recorded in files called ‘blocks.’ Blockchain networks are based upon software source code that establishes and governs their respective cryptographic systems for verifying transactions.”
While the fund will utilize blockchain technology as a data management tool to track the ownership of its shares, it will not be an investment vehicle for cryptocurrencies such as Bitcoin.
“The Fund will not invest in any cryptocurrencies (referred to as, among other things, virtual currencies). At this time, shares of the Fund are not currently available for purchase, sale or transfer from one shareholder to another shareholder (or potential shareholder) (‘peer-to-peer’) on the blockchain or in any secondary trading market.
The Fund’s investment manager believes that blockchain-based shares will provide increased transparency to Fund shareholders and may, in the future, permit reduced settlement times and provide other benefits to Fund shareholders.”
The Stellar Foundation, which leads the development of the network, is also working with IBM on the tech giant’s Stellar-based global remittance platform called World Wire.
World Wire remains without a launch date, and IBM says it’s now focused on securing legal compliance in various countries around the world.