Author: Felix, PANews
Avalanche, which has been "silent for a long time", has received good news recently and has been favored by many mainstream institutions. Last month, the California Department of Motor Vehicles began to digitize the ownership of 42 million cars on the Avalanche network. Recently, the community launched the ACP-77 proposal to change the validator dynamics of Avalanche L1 (formerly known as the subnet). Avalanche L1 validators no longer need to verify the main network and stake at least 2,000 AVAX, reducing the operating costs of Avalanche L1 validators. (Related reading: Interpretation of the new proposal ACP-77, how to unlock Avalanche L1? )
Earlier yesterday (August 22), Franklin Templeton announced that it had deployed its tokenized treasury fund on Avalanche, and Grayscale then announced the launch of an investment trust for AVAX tokens. Driven by a series of positive news, AVAX has risen 10.8% in the past 24 hours and 26.8% in the past 7 days. The trading price has exceeded $25 and is now at $25.78.
Franklin Templeton expands blockchain fund to Avalanche
Earlier yesterday, it was reported that asset management company Franklin Templeton's Nasdaq-listed on-chain U.S. Government Money Fund (ticker: FOBXX) is now available on Avalanche.
FOBXX, the first U.S.-registered mutual fund to use a public blockchain to record transactions and equity, first launched on Stellar in 2021, allowing customers to put cash into U.S. government securities, cash, and repurchase agreements. Two years later, in April 2023, FOBXX expanded to the Polygon POS Ethereum sidechain, and a few days ago on August 8, Franklin Templeton's tokenized money market fund expanded to Arbitrum.
The fund pays investors dividends from the income of U.S. Treasury assets while maintaining a stable share price of $1 per share. Shares of the fund can be purchased through Franklin Templeton's Benji Investments platform, and one BENJI token represents $1 worth of FOBXX shares. Retail traders can use the Benji mobile app, while the Benji Institutional portal provides services for qualified investors.
The FOBXX Fund invests in low-risk U.S. government securities, including fixed, floating and variable rate securities, and repurchase agreements fully collateralized by U.S. government securities or cash. Like almost all crypto tokens, BENJI can be traded 24/7.
FOBXX is the second largest tokenized fund after BlackRock’s BUIDL project. According to rwa.xyz data, as of August 22, the total value of tokenized treasuries exceeded $1.92 billion. FOBXX has a market value of over $424 million, second only to BlackRock’s BUIDL at $502 million.
“Bringing the Benji platform to the Avalanche Network further expands access to our first tokenized money market fund,” said Roger Bayston, head of digital assets at Franklin Templeton.
Grayscale Launches Investment Trust for AVAX Token
Also yesterday, Grayscale Investments launched Grayscale Avalanche Trust for Avalanche's native token AVAX. The trust is currently open for daily subscriptions and operates similarly to Grayscale's existing single-asset investment products, focusing on AVAX. As of press time, Grayscale Avalanche Trust's shares are trading at $12.23, with a management fee of 2.5%.
“The launch of Grayscale Avalanche Trust demonstrates Grayscale’s continued commitment to providing investors with innovative opportunities to participate in exciting developments in the crypto ecosystem,” said Rayhaneh Sharif-Askary, Head of Product and Research at Grayscale. “Avalanche plays a critical role in the advancement of RWA tokenization through its key strategic partnerships and unique multi-chain structure.”
Avalanche Trust is the first trust launched under the supervision of Grayscale's new CEO Peter Mintzberg after he took office last week. Grayscale currently offers 22 crypto trusts, 18 of which are single-asset funds. The asset management company recently focused on decentralized AI and launched an AI-focused digital asset trust, followed by two single-asset funds: Grayscale Bittensor Trust and Grayscale Sui Trust, which hold TAO and SUI tokens respectively.
Driven by a series of favorable factors, it is worth looking forward to whether Avalanche can break out of its independent trend and usher in "another spring" in the future.
Related reading: How Avalanche subnets empower game development
