Key Points
- Franklin Templeton’s Money Market Fund was valued at about $430 million last month.
- The OnChain US Government Money Market Fund uses Stellar Network as the primary public blockchain.
Franklin Templeton is reportedly expanding its OnChain US Government Money Market Fund (FOBXX) to the Ethereum blockchain.
This is the first US-registered mutual fund to use blockchain technology to process transactions and record share ownership.
Franklin Templeton’s Fund Can Be Traded on Ethereum
Before the expansion of Franklin Templeton’s Money Market Fund to Ethereum, the asset manager had already added new blockchains to support the fund in 2024 including Coinbase’s Base, Aptos, and Avalanche.
Stellar was the primary public blockchain of the fund.
Among issuers, Ethereum is the top choice to issue shares of tokenized treasuries.
The blockchain is handling $1.6 billion of assets, followed by Stellar with $393 million, and Solana at over $134 million, according to data from rwa.xyz.
In an April report, Grayscale said that Ethereum is meaningfully decentralized and credibly neutral for network participants, which is a requirement for any global platform for tokenized assets.
The same data from Rwa.xyz shows that FOBXX is listed in the third spot in the tokenized funds list.
FOBXX, Valued at $410 Million
Rwa.xyz lists FOBXX as the third tokenized fund with almost $410 million in total net assets as of November 13.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) reportedly stands at around $544 million, according to the same data, being listed as the number one fund.
The second largest fund is Ondo’s US Dollar Yield (USDY), listed at $452 million in total net assets as of yesterday.
FOBXX was launched back in 2021 in April, and the total net assets in the fund as of October 31, 2024, were almost $430 million, according to the official notes on the FOBXX website.
Franklin Templeton’s fund invests at least 99.5% of its total assets in US government securities, cash, and repurchase agreements collateralized fully by US government securities or cash, according to the official website.
The fund seeks to provide a high level of current income as it’s consistent with the preservation of shareholders’ capital and liquidity, while also trying to maintain a stable share price.
