Countless high-profile brands such as Reddit, Meta, Starbucks, Disney and Nike have come together in a single altcoin project to transition to Web3.
Big brands only prefer this altcoin network
On April 26, Franklin Templeton (BEN), the 15th largest US investment firm, said it will tokenize OnChain US Government Monetary Fund on Polygon (MATIC). The fund was launched on the Stellar network in 2021 and now supports the Polygon network as well.
BREAKING: Franklin Templeton expands its OnChain US Government Money Fund to Polygon https://t.co/n8OtXmK6LX
— The Block (@TheBlock__) April 26, 2023
There are multiple reasons behind choosing Polygon for tokenization. In the continuation of the article, let’s list how Polygon has become an enterprise-grade Blockchain, along with recent collaborations.
Blending blockchain and traditional finance
First: tokenization. Tokenization is the process of converting real-world assets or rights into tokens that can be traded on a blockchain. Basically, it creates a digital representation of an asset that can be easily exchanged using a Blockchain.
This process is getting a lot of attention in the financial industry as it makes asset trading more efficient. For example, commodities such as real estate, art, and even gold can be tokenized, allowing for partial ownership and trade.
Tokenization provides easier access to investments that are out of reach for some investors, as the minimum investment requirement for some assets is often quite high. It also potentially reduces the need for intermediaries such as banks.
Probably for a combination of these reasons, Franklin Templeton chose the Polygon network to expand its reach.
Polygon becomes a favorite of altcoin investors
While the move to tokenize the OnChain Money Fund is groundbreaking, the real news here is that Franklin Templeton chose Polygon. This move is the second time a major financial institution has used Polygon for traditional financial transactions. The first came from JPMorgan Chase in November 2022.
Now Polygon is once again at the forefront of Blockchain technology. The reason these companies chose Polygon is relatively simple. “It makes Ethereum faster and cheaper without sacrificing centralization and security.”
Investment opportunities
Over the years, Ethereum’s popularity has exploded. This is why crypto has become the primary choice for companies seeking new Blockchain-based business models. But due to this popularity, Ethereum’s speeds have slowed. The explosion of fees on the network during heavy use pushed it into the background.
Polygon solves this problem. This is because it processes transactions on its own network and then places it on Ethereum. With this approach, users effectively get the best of both worlds. As such, Polygon isn’t just for traditional financial institutions looking to embrace tokenization. It is also becoming a favorite for retail and consumer brands looking to create new Blockchain products as trends revolving around Web3 continue to grow.
Companies like Starbucks, Nike, and Coca-Cola, to name a few, have used the Polygon network to create new products like NFTs as a way to tap into more tech-savvy consumers and digital-based commerce. For investors eyeing the rapidly expanding industries of Web3 and the compatibility of traditional finance and blockchains, Polygon is the clear leader, according to Fool analysts. cryptocoin.comWe have included the high-level partnerships that we have signed since last year in this article.
