Dubai: Dubai-headquartered Medad Holding and Franklin Templeton (Templeton International, Inc.) have entered a MOU to form a joint venture in the UAE.
The companies have plans to create a new tokenised digital asset that aims to combine the yield-bearing component of a money market fund security with the ease of use and portability of a stablecoin, the companies said in a joint statement.
“The new ‘yielding’ construct would offer investors superior use cases for cash and collateral payments and mark an innovative step forward in combining traditional and new blockchain-based financial rails,” the statement said.
Crypto yield, or yield farming, involves utilising cryptocurrency assets to generate rewards in various forms, such as interest payments, staking rewards, and capital gains. It is similar to earning income from a savings account but in the digital currency domain.
The yielding project will be housed under a new Web3 entity being set up by Medad Holding.
Franklin Templeton will provide the infrastructure and servicing via its BENJI tokenisation suite—the same infrastructure used on Franklin Templeton’s US Government OnChain Money Fund (FOBXX). This is the 'only' tokenised fund in the world where the official set of transaction records is maintained on public blockchains.
“Yieldcoins will combine the best of both worlds,” according to Mohammed Alshaiba Almazrouei, Chief Operating Officer of Medad Holding. “It provides the medium of exchange, unit of account, and ease of use of a stablecoin with a potential for growth by being linked to interest-bearing assets. As such, the yielding project should address a gap in the market.”
Franklin Templeton Digital Assets (FTDA) has been active in the digital asset ecosystem since 2018, building blockchain-based solutions and running node validators.
