What Is the Minimum for Franklin Templeton's Tokenized Fund?

Jenny Johnson says the first natively on-chain tokenized money market fund the SEC approved can open an account for $20, while a traditional Franklin Templeton money market fund needs $500. Anything below $500 means the other shareholders subsidize the servicing fees. On the blockchain system the minimum can probably go down to $5.

The SEC had the firm parallel process the fund on the old transfer agency system, the old shareholder record keeping system, and the blockchain system. Johnson thinks only two firms were still running the old system in-house. Side by side, the on-chain version was far more cost-effective. The tokenized money market fund calculates interest every second. A hedge fund that uses it as collateral and holds it for four hours, 22 minutes and 32 seconds is paid interest for that time. Cash earned that day is paid into the account at the end of the day. A traditional money market fund accrues all month, and the holder cannot get to the cash until the end of the month.

Trading will run 24 by 7, with atomic settlement. The ability to program terms and add AI means a firm can build the logic of a trading pattern into the fund. A corporate treasurer, or a portfolio manager using the fund as senior cash, can move the cash as it comes in and use it in a portfolio.