Galaxy Digital has formed a strategic partnership with Germany-based DWS, a fund group with nearly $1 trillion in assets under management, to introduce exchange-traded products (ETPs) to European investors.

In a bid to streamline the movement of its stablecoin USDC between blockchains, Circle has unveiled a novel method that promises to be faster, more secure, and cost-efficient than the cross-chain bridges that are currently used in decentralized finance.

Global investment management giant Franklin Templeton has announced that it’s launching its Franklin OnChain U.S. Government Money Fund (FOBXX) on the Polygon (MATIC) blockchain. The first is the first U.S.-registered mutual fund to utilize a public blockchain for transaction processing and share ownership recording.

Top stories in the Crypto Roundup today:

• Galaxy Digital Partners with DWS to Bring Crypto ETPs to Europe
• USDC Issuer Unveils New Cross-Chain Transfer Protocol
• Franklin Templeton Launches Money Market Fund on Polygon Blockchain
• USDT Trading Volume Accounted for 79% of All Stablecoin Volume in April

Galaxy Digital Partners with DWS to Bring Crypto ETPs to Europe

Galaxy Digital has formed a strategic partnership with Germany-based DWS, a fund group with nearly $1 trillion in assets under management, to introduce exchange-traded products (ETPs) to European investors.

The collaboration aims to bolster Galaxy's international distribution capabilities and tap into the rapidly growing European cryptocurrency market. According to Blockworks, a spokesperson has said European investors have shown a sustained interest in institutional-grade products that facilitate cost-effective and streamlined access to cryptocurrency markets using brokerage accounts.

While such products have gained traction in the US market, their development has lagged in Europe. DWS, previously a division of Deutsche Bank, managed approximately €821 billion (around $910 billion) in assets as of December 31, with nearly half of those assets originating in Germany and a quarter in the Americas.

The new partnership between Galaxy Digital and DWS follows the former’s collaboration with Invesco in September 2021, which focused on developing a suite of cryptocurrency ETFs in the US.

In November, Galaxy partnered with Itaú Asset Management, Latin America's largest private asset manager, to launch the IT Now Bloomberg Galaxy Bitcoin ETF (BITI11) on the B3 Stock Exchange.

USDC Issuer Unveils New Cross-Chain Transfer Protocol

In a bid to streamline the movement of its stablecoin USDC between blockchains, Circle has unveiled a novel method that promises to be faster, more secure, and cost-efficient thanthe cross-chain bridges that are currently used in decentralized finance.

Dubbed the "Cross-Chain Transfer Protocol" (CCTP), this technology will initially facilitate USDC transfers between the Ethereum and Avalanche blockchains, with additional chains slated for integration in the latter half of 2023.

The CCTP aims to overcome the current fragmentation of USDC's $30 billion market cap across numerous blockchains. Although Circle issues "native" USDC on several major networks, including Ethereum and Avalanche, these have largely remained separate, necessitating complex and occasionally costly cross-chain transfers for those seeking to "bridge" the gap.

In contrast to bridges, which addressed this issue by generating a derivative token called a wrapped asset, Circle's innovative method involves the destruction of USDC on the source chain and its subsequent recreation on the destination chain.

The process could yield the most significant benefits in asset swaps, potentially enabling seamless cross-chain and cross-token transfers.

Franklin Templeton Launches Money Market Fund on Polygon Blockchain

Global investment management giant Franklin Templeton has announced that it’s launching its Franklin OnChain U.S. Government Money Fund (FOBXX) on the Polygon (MATIC) blockchain. The first is the first U.S.-registered mutual fund to utilize a public blockchain for transaction processing and share ownership recording.

FOBXX has achieved efficiencies through its blockchain-integrated system, with improvements that include enhanced security, expedited transaction processing, and reduced costs, ultimately benefiting the fund's shareholders, according to Franklin Templeton.

The fund's transfer agent maintains the official record of shared ownership via a proprietary system that leverages blockchain technology to handle transaction activity.

The fund aims to provide investors with a high level of current income, consistent with the preservation of shareholders' capital and liquidity. It seeks to maintain a stable $1.00 share price and invest at least 99.5% of its total assets in government securities, cash, and repurchase agreements fully collateralized by government securities or cash.

Each share of the Franklin OnChain U.S. Government Money Fund is represented by one BENJI token. To gain exposure to the fund, token holders can do so through the Benji Investment app.

USDT Trading Volume Accounted for 79% of All Stablecoin Volume in April

USDT’s market cap increased by 2.03% in April to $81.5 billion, almost reaching its highest value ever of $83.7 billion (set on May 1, 2022). The stablecoin’s share of the total market has also grown for the fifth month in a row to 62.1% - the highest level since April 2021.

USDT accounted for 79% of all trades with stablecoins on centralised exchanges in April. USDT has the most trading pairs on centralised exchanges with 2,931, followed by USD with 2,246 trading pairs.

Dig deeper into all things stablecoins via CCData’s latest Stablecoins & CBDCs Report.

State of the Crypto by Top Tier Exchange Volume

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