Franklin Templeton Expands FOBXX Fund to Ethereum Blockchain

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As a seasoned crypto investor with over a decade of experience under my belt, I must say that the recent move by Franklin Templeton to expand its OnChain U.S. Government Money Market Fund (FOBXX) to Ethereum is a game-changer. Having closely followed the evolution of blockchain technology and its applications, it’s fascinating to see one of the industry giants like Franklin Templeton embracing Ethereum, the second-largest by market capitalization.

Franklin Templeton has extended its OnChain U.S. Government Money Market Fund (FOBXX) onto the Ethereum blockchain, which ranks second in terms of overall market value.

Now, Ethereum is joining the roster of blockchains that our fund supports, alongside Avalanche, Aptos, and Coinbase’s Base. With its integration, Ethereum becomes the largest blockchain we’re working with, having been deployed on networks such as Arbitrum and Polygon previously.

2021 saw the debut of FOBXX, a pioneer in utilizing public blockchain technology for transaction and ownership tracking. With a market capitalization of $410 million, it ranks as the third-largest tokenized money market fund currently available. The majority of its investments are directed towards U.S. government securities, cash holdings, and repurchase agreements that are backed by either U.S. government securities or cash.

Based on the latest figures from rwa.xyz, there’s been almost a 2% growth in tokenized Treasurys over the past week. As of current data from Dune, the total value managed in these tokenized government securities amounts to approximately $2.329 billion.

Additionally, Franklin Templeton’s FOBXX has a significant presence in the market, accounting for about 17.6% of the total market share across Ethereum, Arbitrum, Avalanche, Polygon, and Stellar. At the moment, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) dominates the sector with an impressive $513.47 million in assets under management and a 22% market share.

Among platforms for tokenized treasury issues, Ethereum continues to lead the way with over $1.6 billion in managed assets. As reported by rwa.xyz, Ethereum is also followed closely by Stellar and Solana in the area of tokenized government securities issuance.

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2024-11-14 21:09