Franklin Templeton Expands $410M Mutual Fund to Ethereum

Franklin Templeton recently expanded the trading capabilities of its OnChain U.S. Government Money Market Fund (FOBXX) to include Ethereum, reinforcing its presence in the multi-chain tokenized asset market. This strategic move adds to the fund’s current blockchain partnerships, which include Avalanche, Aptos, and Coinbase’s Base.

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Ethereum, the second largest L1 blockchain technology was designed to be scalable, secure, programmable, and decentralized.

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— Franklin Templeton Digital Assets (@FTDA_US) November 14, 2024

Established in 2021, this fund was the first of its kind to implement a public blockchain for the tracking of transactions and ownership. With a current market cap of $410 million, it ranks as the third-largest tokenized money market fund. At the time of writing, it has 491 holders, showing an increase of 1.66% over the last 30 days, according to data from rwa.xyz.

Currently, the USD Institutional Digital Liquidity Fund (BUIDL) from BlackRock holds the top position with a total of $545 million. Ondo’s U.S. Dollar Yield (USDY) follows closely behind with $452 million.

Franklin Templeton: Transforming Investment Management with Blockchain

The diversification strategy of Franklin Templeton aligns with a wider industry shift towards utilizing various blockchain networks for improved security and accessibility. It also corresponds with the vision for the fund articulated by Roger Bayston, Head of Digital Assets at Franklin Templeton, in April 2023.

“We believe that blockchain technologies have the potential to reshape the investment management industry by providing greater transparency and lower operational costs for traditional financial products… assets built on blockchain rails, like the Franklin OnChain U.S. Government Money Fund, will eventually be interoperable with the rest of the digital asset ecosystem,” he remarked.

Data from rwa.xyz shows Ethereum remains the leading platform for issuing tokenized treasuries, with more than $1.6 billion in assets. Stellar (XLM) and Solana (SOL) are next in line, while networks like Aptos, Sui, and Base account for smaller amounts, highlighting Ethereum’s pivotal role in the blockchain asset sector.

About Franklin OnChain U.S. Government Money Market Fund

FOBXX operates as a regulated 1940 Act fund, investing over 99.5% of its total assets in government securities, cash, and repurchase agreements backed entirely by government securities or cash. It seeks to provide a high level of current income while safeguarding shareholders’ capital and liquidity, aiming to keep its share price stable at $1.00.

This represents a significant blend of blockchain technology with traditional finance, showcasing greater interoperability within the financial system. Consequently, the Stellar Development Foundation decided to diversify its treasury by investing several million dollars into the fund.

Malaya has positions in SHIB, ETH, USDT, MATIC, etc. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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