Franklin Templeton has recently expanded its tokenized money market fund, known as Franklin OnChain US Government Money Fund (FOBXX), to the Solana blockchain, enhancing its presence in the digital asset sector.
Introduction of FOBXX by Franklin Templeton
With assets under management totaling $1.6 trillion, Franklin Templeton disclosed this strategic move on February 12th, as part of its broader multi-chain approach for FOBXX.
Initially launched in 2021, the fund has seamlessly integrated with various blockchains, including Ethereum [ETH], Coinbase’s Base, Aptos [APT], and Avalanche [AVAX], with Stellar [XLM] being its primary blockchain network.
As the third-largest tokenized money market fund globally, FOBXX is now close to reaching a total asset value of $600 million, affirming its increasing adoption among investors.
Moreover, it holds the title of being the first mutual fund worldwide to utilize blockchain technology for processing transactions and recording share ownership, where each share is represented by a BENJI token.
Franklin Templeton shared its excitement on X (formerly Twitter), stating,
“A new chain is live. BENJI is now available on Solana! Solana stands out as a rapid, secure, and censorship-resistant Layer 1 blockchain that promotes global adoption through its open infrastructure.”
Surging Popularity of Solana
Clearly, there has been a notable surge in institutional interest in the Solana network, indicating a departure from being solely associated with meme coins.
In Q3 2024, investments in decentralized applications running on SOL witnessed a remarkable 54% increase, totaling $173 million, reflecting a growing trust among wealth managers and hedge funds.
The SOL token has significantly recovered from its bear market lows of below $10 post the collapse of FTX.
It recently hit a 52-week peak of $265.10, partially triggered by the hype around the launch of a meme coin by former U.S. President Donald Trump on the Solana network.
Furthermore, Solana has positioned itself as the leading platform for introducing new tokens, especially in decentralized trading.
An analysis from Pantera Capital indicated that SOL now represents over 90% of new tokens listed on decentralized exchanges, a substantial leap from just 1% at the conclusion of 2023.
In line with the same sentiment, Cosmo Jiang and Eric Wallach in the report remarked,
“Even if the innovation originates elsewhere, it eventually gravitates towards Solana.”
BlackRock’s BUIDL vs. Franklin Templeton’s FOBXX
However, as Franklin Templeton solidifies its position, it encounters fierce competition from BlackRock’s BUIDL fund, which has surpassed Franklin’s BENJI token in market capitalization, reaching $637 million.
With the total value of tokenized treasury products amounting to $3.6 billion, the competition for supremacy in this emerging sector is escalating.
Besides the money market fund, Franklin Templeton has been actively broadening its cryptocurrency offerings by unveiling Bitcoin [BTC] and Ethereum [ETH] ETFs, alongside seeking SEC approval for a Crypto Index ETF.
Its recent initiative—a trust based in Delaware linked to a Solana ETF—further underscores its strategic move towards blockchain-based investment offerings.
Consequently, as institutions embrace tokenized assets, Franklin Templeton’s groundbreaking efforts could play a pivotal role in shaping the future landscape of digital finance.