Key Takeaways:
- Franklin Templeton expands on-chain: The $1.6T asset manager launched its U.S. Government Money Fund (FOBXX) on Solana, adding to its existing presence on Ethereum, Avalanche, and L2 networks.
- Institutional adoption grows: FOBXX, managing $512M with a 4.2% yield, is the first U.S. mutual fund leveraging blockchain for transactions and record-keeping.
- Broader crypto push: Franklin Templeton recently launched Bitcoin & Ethereum ETFs and registered a Delaware trust for a potential Solana ETF, despite ongoing regulatory uncertainty around SOL.
Franklin Templeton, a leading U.S. financial services firm managing $1.6 trillion in assets, has expanded its blockchain presence by launching its OnChain U.S. Government Money Fund (FOBXX) on the Solana blockchain.
Announced on February 12, this move extends the fund’s multi-chain strategy, which began in 2021.
Breaking news: $1.5T AUM firm Franklin Templeton’s tokenized money market fund (FOBXX) is now available on Solana!
— Solana (@solana) February 12, 2025
This is finance evolving in real-time 🧵 pic.twitter.com/Yuv3otnuOk
FOBXX primarily invests in U.S. government securities, cash, and fully collateralized repurchase agreements, ensuring minimal credit risk.
As of January 31, 2025, the fund held approximately $512 million in assets, with a seven-day effective yield of 4.2%.
The fund already operates on Ethereum, Avalanche, and Ethereum layer-2 solutions like Arbitrum, Base, Polygon, and Aptos.
It was the first U.S. mutual fund to leverage blockchain technology for transaction processing and record-keeping, with each BENJI token representing one share.
This expansion aligns with Franklin Templeton’s broader blockchain and cryptocurrency strategy.
The firm launched Bitcoin and Ethereum ETFs in 2024 and is pursuing regulatory approval for a Crypto Index ETF.
Additionally, it recently registered a trust in Delaware linked to a potential Solana ETF.
However, regulatory uncertainty persists, particularly concerning whether SOL qualifies as an unregistered security.
This development comes amid Solana’s growing institutional adoption and Franklin Templeton’s deepening involvement in digital asset investment.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
Check Efe out on:
