Franklin Templeton, a global investment firm, has made a significant move in the world of blockchain technology by expanding its OnChain U.S. Government Money Market Fund (FOBXX) to the Ethereum blockchain. This development marks Ethereum as the largest blockchain supporting the $410 million tokenized fund, which was initially launched in 2021.
The FOBXX fund is the first money market fund to utilize a public blockchain for tracking transactions and ownership. It primarily invests in U.S. government securities, cash, and repurchase agreements collateralized by U.S. government securities or cash. The fund has already been deployed on networks like Avalanche, Aptos, and Coinbase’s Base, with Ethereum being the latest addition.
According to recent data from rwa.xyz, tokenized Treasurys have seen a nearly 2% increase in the past week, with total assets under management (AUM) in tokenized government securities now standing at $2.329 billion based on data from Dune. Franklin Templeton’s FOBXX holds a 17.6% market share across Ethereum, Arbitrum, Avalanche, Polygon, and Stellar.
In comparison, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) currently leads the sector with $513.47 million in AUM and a 22% market share. Ethereum remains the top choice for tokenized treasury issuances, handling over $1.6 billion in assets. Stellar and Solana follow Ethereum in tokenized government securities issuance.
The expansion of the FOBXX fund to the Ethereum blockchain is a significant step towards mainstream adoption of blockchain technology in the financial sector. It not only enhances transparency and security in tracking transactions but also opens up new opportunities for investors looking to diversify their portfolios with tokenized assets.
Overall, Franklin Templeton’s decision to expand the FOBXX fund to Ethereum showcases the growing importance of blockchain technology in the world of finance and investment. As more institutions and investors embrace this technology, we can expect to see further innovations and developments in the tokenization of traditional assets.