Franklin Templeton Ventures into Altcoins with New Institutional Fund

Franklin Templeton, a prominent asset management firm, is entering the realm of alternative cryptocurrencies (altcoins). The company plans to establish a private fund aimed at institutional investors keen on exploring the expanding altcoin market.

Known for its involvement in the cryptocurrency space, Franklin Templeton aims to diversify beyond Bitcoin and Ether. Sources familiar with the matter indicate that the new fund will not only provide exposure to digital assets but also offer staking rewards.

While specific altcoins to be included in the fund have not been specified, Franklin Templeton has recently shown interest in the Solana network. This interest follows a substantial increase in Solana's decentralized exchange volume, which surged by 319% in Q1 2024 to reach $1.5 billion, as reported by Messari.

With approximately $1.64 trillion in assets under management as of March 2024, Franklin Templeton is globally recognized as one of the largest investment management firms. Its influence in the crypto sector is evident, having successfully launched a Bitcoin spot exchange-traded fund (ETF) earlier this year.

In further cementing its position in the digital assets space, Franklin Templeton also supported a spot Ether ETF, recently approved by the United States Securities and Exchange Commission (SEC), pending final operational clearance.

Expanding its digital currency initiatives, Franklin Templeton disclosed that investors on its Benji Investments platform can now fund investments in its Franklin OnChain U.S. Government Money Fund (FOBXX) using the USD Coin stablecoin. FOBXX was the first U.S.-registered mutual fund to integrate public blockchain for transaction processing and ownership recording. The conversion process will be facilitated by Zero Hash, a platform specializing in crypto-centric stablecoin infrastructure.