Franklin Templeton brings tokenized money market fund to Avalanche

Franklin Templeton, a global investment firm with over $1.6 trillion in assets under management, has expanded its tokenized money market fund with Avalanche.

Franklin Templeton announced on August 22 that its OnChain US Government Monetary Fund has been expanded onto the Avalanche (AVAX) blockchain in order to meet increasing investor demand.

This expansion comes after Franklin Templeton recently launched the FOBXX fund on the Ethereum (ETH) layer-2 network Arbitrum (ARB). FOBXX is also available on Stellar (XLM) and Polygon (MATIC).

“I am excited to see the Avalanche platform support the Franklin OnChain U.S. Government Monetary Fund. Franklin Templeton has a mutual commitment to developing transformative digital financial products and services that will meet on-chain investor demand today and bring off-chain capital and users into the ecosystem tomorrow.”

John Wu, President of Ava Labs.

Investing in FOBXX

Franklin Templeton launched its money market fund in 2021, which allows investors to earn yields on U.S. Treasuries. The company uses the BENJI token to represent a single share of FOBXX, which investors can purchase using the USDC (USDC) stablecoin through their Benji wallet. Holders can also transfer fund shares on-chain, peer-to-peer.

Roger Bayston, head of digital assets at Franklin Templeton, said bringing the Benji platforms to Avalanche “will further expand access to our first-of-its-kind tokenized money market fund.”

Tokenized treasury market

The total value of tokenized U.S. Treasury bonds is over $1.92 billion as of Aug. 22, according to data from real-world asset platform rwa.xyz.

FOBXX has a market cap of over $424 million, followed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which is currently the leader with a valuation of over $502 million.

In terms of blockchain networks, Ethereum holds the vast majority of the market with a market cap of over $1.3 billion, while Stellar, Solana, and Mantle follow with $434 million, $48 million, and $30 million respectively.