KEY FACTS: Franklin Templeton, a $1.6 trillion asset manager, has expanded its OnChain U.S. Government Money Fund (FOBXX) to the Solana blockchain, reinforcing its commitment to blockchain-powered financial products. FOBXX, launched in 2021 as the first U.S. mutual fund utilizing blockchain for transactions, holds $512 million in assets invested in U.S. government securities. Each share is tokenized as a BENJI token, to ensure transparency and efficiency. This move follows the firm's multi-chain approach, which has already integrated Ethereum, Avalanche, and other blockchains. Additionally, Franklin Templeton has launched Bitcoin and Ether ETFs and is pursuing SEC approval for a Crypto Index ETF.
Source: Franklin Templeton Digital Assets/ X
Franklin Templeton Launches US Government Money Fund on Solana Blockchain
Franklin Templeton, a prominent U.S.-based financial services firm managing assets worth $1.6 trillion, has announced the extension of its OnChain U.S. Government Money Fund (FOBXX) to the Solana blockchain. The firm, which integrates traditional financial products with cutting-edge blockchain technology as a pioneering approach to asset management, announced the development on February 12, 2025, through a blog post and on the X platform.
Solana is a fast, secure and censorship resistant Layer 1 blockchain encouraging global adoption via its open infrastructure.
SourceNew chain unlocked. BENJI is now live on @solana! Download the Benji app here: http://benjiinvestments.com
FOBXX, launched in 2021, is distinguished as the first U.S. mutual fund to employ blockchain technology for transaction processing and record-keeping. The fund allocates nearly 100% of its assets to U.S. government securities, cash, and fully collateralized repurchase agreements, ensuring minimal credit risk. As of January 31, 2025, FOBXX boasts assets totaling $512 million and offers investors a seven-day effective yield of 4.2%. Each share of the fund is tokenized, represented by the BENJI token, with one BENJI equating to one share in FOBXX. This tokenization facilitates seamless transactions and transparent record-keeping on the blockchain.
The decision to integrate FOBXX with the Solana blockchain aligns with Franklin Templeton's strategy to broaden its presence across various blockchain platforms. A representative from the firm stated,
"With this development, Franklin Templeton is expanding its layer-1 blockchain footprint as Solana continues to grow its institutional participant ecosystem."
Solana, known for its high throughput and low transaction costs, is gaining traction among institutional investors. The network's scalability and efficiency make it an attractive platform for deploying tokenized financial products.
Franklin Templeton's foray into blockchain is not limited to Solana. FOBXX is also available on several other blockchains, including Ethereum, Avalanche, Arbitrum, Base, Polygon, and Aptos. This multi-chain approach underscores the firm's dedication to leveraging diverse blockchain ecosystems to enhance investors' accessibility and efficiency.
Beyond FOBXX, Franklin Templeton has been actively expanding its footprint in the cryptocurrency sector. In January 2024, the firm launched a Bitcoin exchange-traded fund (ETF), followed by an Ether ETF in July 2024. Additionally, the company is currently seeking approval from the U.S. Securities and Exchange Commission to introduce a Crypto Index ETF, aiming to provide investors with diversified exposure to the digital asset market.
The expansion of FOBXX to the Solana blockchain shows Franklin Templeton's commitment to innovation in asset management. The firm aims to enhance transparency, reduce operational costs, and provide investors with more efficient access to financial products by embracing blockchain technology.
Franklin Templeton is a global leader in asset management, offering a comprehensive range of investment solutions and services to clients worldwide. With a history of innovation and a commitment to excellence, the firm continues to explore new avenues to meet the evolving needs of investors.
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