Franklin Templeton’s Polygon move – Good news for MATIC’s prices?
  • Franklin Templeton tokenized $380 million in US government funds on Polygon.
  • Interest in polygon NFTs has plummeted.

polygon [MATIC] Throughout the last week, we have seen some positive price movements. This increase may be further sustained by the improvement in sentiment around Polygon caused by Franklin Templeton’s actions.

Institutional interests

Franklin Templeton has embarked on an effort to tokenize $380 million in government debt on both the Polygon and Stellar blockchains. This move enables direct peer-to-peer (P2P) transfers without the need for an intermediary.

The introduction of Franklin OnChain United States Government Money Fund (FOBXX) offers shares represented as BENJI tokens. These tokens are tradable on the public Polygon and Stellar blockchains, giving investors a new level of flexibility in managing their assets through direct exchange.

This innovative approach aims to streamline trading and expand access, allowing investors to manage their assets more efficiently.

This development puts the investment giant in a position to directly compete with BlackRock’s tokenization efforts.

BlackRock recently collaborated with Securitize to introduce the BUIDL fund on Ethereum, demonstrating a similar commitment to innovating traditional financial structures using blockchain solutions.

A major investment firm choosing Polygon for tokenization validates Polygon’s growth potential.

This approval significantly increases Polygon’s credibility and reputation in the traditional financial industry, further increasing institutional interest and potentially building even more tokenized assets on Polygon.

Additionally, the ease of trading BENJI tokens on the Polygon blockchain significantly increases the liquidity of the underlying Treasury funds.

This allows us to attract more investors seeking exposure to government securities while offering the benefits of faster and cheaper trading on Polygon compared to traditional financial systems. .

Turning to the NFT field

However, it wasn’t all roses and sunshine for the Polygon ecosystem. Over the past few days, the NFT sector has seen a significant drop in trading volumes. This could lead to a reduction in network fees, which are the primary source of revenue for Polygon validators.

Additionally, a decrease in trading volume may lead to reduced liquidity for existing NFT projects on Polygon. This means it may be difficult for users to buy and sell NFTs quickly and at a fair price.

read polygons [MATIC] Price prediction for 2024-2025

Source: Artemis

At the time of writing, MATIC is trading at $0.7183, and its price has increased by 2.43% in the past 24 hours. Trading volume during this period also decreased by 16.34%.

Source: Santiment

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