Franklin Templeton launches money market fund on Arbitrum

As a seasoned researcher who has witnessed the evolution of the financial industry, I find Franklin Templeton’s expansion into the Arbitrum ecosystem a significant milestone. With my years of experience observing the rise and fall of digital trends, I can confidently say that this move signifies a maturing of blockchain technology in the mainstream financial sector.


Financial powerhouse Franklin Templeton, overseeing approximately $1.66 trillion in assets, has unveiled plans to debut its money market fund on the Arbitrum platform.

The financial titan announced in a statement that the Franklin OnChain U.S. Government Money Fund FOBXX is now open for investment on Arbitrum, a Layer 2 platform compatible with Ethereum (ETH). This move extends the availability of FOBXX to three different blockchain networks, including Stellar (XLM) and Polygon (MATIC) where it was already accessible.

Expansion a key step for Franklin Templeton

Franklin Templeton and the Arbitrum Foundation are teaming up to offer tokenized funds to investors via Benji Investments, a blockchain-connected platform managed by Franklin Templeton. This investment opportunity will be accessible through digital wallets on Benji, with qualified investors also having access to the fund within the Arbitrum network.

“Steven Goldfeder, co-founder and CEO of Offchain Labs, expressed enthusiasm in a statement about Franklin Templeton’s involvement with the Arbitrum ecosystem. He noted that their dedication to innovation complements our objective of delivering flexible and streamlined financial solutions. We eagerly anticipate the positive changes Franklin Templeton will bring to our community through their participation.”

“Moving into the Arbitrum network marks a significant milestone for us as we aim to enhance our asset management abilities using blockchain technology,” Roger Bayston, the chief of digital assets at Franklin Templeton, stated.

BlackRock and Ondo Finance

In 2021, FOBXX was introduced as an American-based investment fund. It utilizes publicly accessible blockchain technology for executing transactions and maintaining ownership documentation.

Based on information from rwa.xyz, as of August 8th, FOBXX’s market capitalization stands at approximately $412 million, trailing behind BlackRock’s USD Institutional Digital Liquidity Fund. In terms of Treasury products, BUIDL leads the pack with over $510 million, while Ondo Finance’s USDY (Ondo U.S. Dollar Yield) ranks third with a total of around $299 million.

Franklin Templeton has been actively embracing blockchain technology ever since it established its digital assets division in 2018. At present, they operate as node validators and have introduced several cryptocurrency products, such as a spot Bitcoin ETF boasting over $363 million in total assets.

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2024-08-08 18:00