A tokenized fund, also known as a digital fund, on-chain fund or a BTF (blockchain-traded fund), is an investment vehicle whose shares or units are digitally represented and can be traded and recorded on a distributed ledger. Investors own the tokens that represent shares or units in the fund.
The Franklin OnChain U.S. Government Money Fund is the first U.S.-registered mutual fund to use blockchain process to transactions and record share ownership. Token holders gain exposure to the fund in digital wallets, such as Franklin Templeton’s Benji app.
The WisdomTree Short-Duration Income Digital Fund is an actively-managed fund that provides exposure to short-duration fixed income securities to generate income while preserving capital.