Franklin Templeton Plans Launch of Blockchain Fund II for Crypto Market Investments

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In an effort to lower the risks of US debt defaults, stablecoin issuer Circle has changed its reserves treasury. According to CEO Jeremy Allaire, the company has moved to short-dated U.S. Treasury bonds in order to avoid becoming involved in a potential U.S. debt default. Current holdings mature no later than May 31 according to Blackrock-managed Circle Reserve Fund data. According to Treasury Secretary Janet Yellen, if Congress doesn’t increase the federal debt ceiling, the government will be forced to make “decisions.” Rival stablecoin provider Tether asserts that the majority of its holdings are placed in Treasury bills with an average maturity of less than 90 days. Since reaching an all-time high of $56 billion in the previous year, the USDC supply has decreased by 46%. The supply of USDC has decreased during the past year, dropping by 46% from its peak of $56 billion in June 2022. In April, Allaire attributed the declining market value of USDC to both the banking crisis and America’s attack against cryptocurrencies.

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According to a Wednesday filing with the U.S. Securities and Exchange Commission (SEC), Franklin Templeton, which manages approximately $1.4 trillion in assets, intends to add a second blockchain fund to its crypto market offerings. The Blockchain Fund II, a private equity fund, will require a $100,000 minimum investment. The association’s past blockchain reserve, laid out in late 2021 was funding centered. Additionally, the offering differs from the company’s previous venture into cryptocurrency, which utilized separately managed accounts (SMA) strategies by investing in the ten to fifteen largest digital assets.

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