Franklin Templeton, one of the largest global investment managers, has launched its Franklin OnChain U.S. Government Money Fund on Avalanche. This expansion marks the fund’s third blockchain network integration, following earlier launches on Stellar and Polygon POS. The move aims to broaden access to tokenized U.S. treasuries, maintaining a stable $1 share price.
Franklin Templeton Expands OnChain Fund to Avalanche
Franklin Templeton’s decision to bring its OnChain U.S. Government Money Fund (FOBXX) to Avalanche highlights its commitment to blockchain innovation. Avalanche, a Layer 1 network with a significant DeFi presence, offers a robust platform for this expansion.
By integrating with Avalanche, Franklin Templeton aims to reach a broader investor base and enhance accessibility to its digital financial products. The Benji Investments platform, Franklin Templeton’s digital interface, facilitates the purchase of FOBXX shares, with each BENJI token representing $1 of fund shares.
The platform is accessible to retail traders through the Benji mobile app and to accredited investors via the Benji Institutional web portal. This multi-chain strategy is part of Franklin Templeton’s effort to stay competitive in the growing market of tokenized treasuries.
Franklin Templeton and BlackRock Drive Market Expansion
Franklin Templeton’s expansion onto Avalanche is a strategic move to compete with BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). BlackRock’s BUIDL, launched in March 2023, quickly gained traction, surpassing FOBXX in assets under management within six weeks.
Currently, BUIDL holds $502.7 million in assets, while FOBXX manages $424.9 million, despite a 30.5% growth in 2024. The rivalry between FOBXX and BUIDL is growing the tokenized treasuries sector, which has grown 150% in market cap since the beginning of the year.
This growth signifies the growing need for the blockchain technology based financial services. Franklin Templeton strategy is the multi-chain approach that aims both on-chain and off-chain investors that helps connect the traditional finance world to the world of digital assets.
Avalanche’s DeFi Role Expands with New Investments
The collaboration of Avalanche with OnChain fund of Franklin Templeton means that blockchain gains its traction within the DeFi sphere. Through 2024, the total value locked (TVL) of Avalanche remains more or less constant at $1. At a current market capitalization of $12 billion, the network still holds significant grounding in the DeFi sector.
The decision of Franklin Templeton to join Avalanche will also increase the network recognition as well as the inflow of institutional investors. In another recent development, Grayscale Investments announced its association with Avalanche. The company has launched Avalanche trust to enable investors to gain exposure to AVAX, the native token of the network.
This action by Grayscale is in sync with Franklin Templeton’s expansion and shows the growing institutional attention towards Avalanche. The use of Avalanche blockchain in the DeFi sector may increase because more financial products are being developed on this platform.
