Global asset manager Franklin Templeton, which has $1.53 trillion in assets under management (AUM), has launched its blockchain-based money market fund.
Global asset manager Franklin Templeton, which has $1.53 trillion in assets under management (AUM), has launched its blockchain-based money market fund, the OnChain U.S. Government Money Fund (FOBXX), on the leading Ethereum layer-2 Arbitrum. This move highlights the growing interest in tokenized real-world asset (RWA) funds among investors.
Franklin Templeton aims to broaden the fund's reach, particularly among retail investors, by utilizing secure and active networks. Roger Bayston, head of digital assets at Franklin Templeton, emphasized the importance of network cost, resilience, and scalability in building FOBXX’s infrastructure. He added that “expanding into the Arbitrum ecosystem is an important step on our journey to empower our asset management capabilities with blockchain technology.”
FOBXX enables peer-to-peer trading of shares on a public blockchain. Initially launched in 2021, the fund invests heavily in U.S. government securities, cash, and repurchase agreements. It began on the Stellar blockchain and later expanded to Polygon, and now Arbitrum, enhancing its accessibility.
This expansion coincides with a surge in demand for tokenized asset funds. The tokenized treasury market has more than doubled to $1.8 billion from January to June 2024, driven by interest in high-return government securities.
FOBXX, with approximately $420 million in assets under management as of July 31, is the second-largest offering in its category. It aims to provide substantial returns to both institutional and retail investors by focusing on U.S. government-backed instruments.
Arbitrum (ARB) gained 8.87% in the past 24 hours, and is currently trading at $0.5549. However, it is still down 12.4% over the past week, following the wider market rout on Monday.
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