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Franklin Templeton, a global investment management firm, has made a significant move that underscores the growing convergence of traditional finance and blockchain technology.
The firm has just broadened the reach of its tokenized money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX), to the Ethereum blockchain. This came after
The fund, launched in 2021, has become the first-ever money market fund to leverage a public blockchain for transaction and ownership tracking.
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Franklin Templeton and the RWA Agenda
This initiative comes as tokenizing real-world assets (RWAs) is rapidly gaining traction in finance. The FOBXX fund, represented by the BENJI token, focuses on secure and efficient investments in U.S. government securities. It offers liquidity and stability through cash investments and fully collateralized repurchase agreements.
According to Franklin Templeton, the fund ensures that at least 99.5% of its assets are invested in these highly secure instruments. It provides stability for investors while also exploring the vast potential of blockchain.
Franklin Templeton’s decision to add Ethereum blockchain to the list of its supported networks reflects a continued commitment to integrate blockchain technology into its fund offerings.
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This move follows the firm’s addition of other blockchains earlier this year, including the Aptos blockchain. This action is part of its broader strategy to expand the accessibility and liquidity of tokenized government securities.
Tokenized Treasurys and Growing Market Impact
Tokenized Treasurys have seen a significant rise, with recent data showing a nearly 2% increase in U.S. government securities over the past week. This surge highlights the increasing adoption of tokenized assets across various platforms and the growing interest in blockchain-based financial products.
As of now, the total assets under management (AUM) in tokenized government securities stand at $2.329 billion. Franklin Templeton’s FOBXX fund holdings are at $409.93 million, representing 17.6% of the market share.
Despite competition from BlackRock’s BUIDL fund, which leads with $513.47 million AUM, FOBXX remains a key player. BUIDL’s expansion across blockchains like Aptos, Arbitrum, and Polygon highlights the growing reach of tokenized assets.
Ethereum’s Dominance in Tokenized Treasurys
Ethereum remains the dominant blockchain for tokenized treasury issuances, with its total RWA value now surpassing $2.96 billion.
This makes Ethereum a critical infrastructure for the growth of tokenized government securities. The network drives greater investor confidence and fosters innovation in decentralized finance (DeFi) applications.
Franklin Templeton’s move to expand its presence on Ethereum further emphasizes the blockchain’s central role in tokenizing traditional assets.
