Franklin Templeton Expands Tokenized Money Market Fund to Solana

Franklin Templeton, a prominent asset manager renowned for its innovative financial products, has officially broadened its tokenized money market fund offerings to include the Solana blockchain. This development follows the firm’s earlier initiatives in the cryptocurrency domain, including the launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs).

Launch of Franklin OnChain U.S. Government Fund

The newly introduced Franklin OnChain U.S. Government fund is now available for investors on the Solana blockchain (SOL). An announcement regarding this expansion was shared on the social media platform X by the Franklin Templeton Digital Assets account. The platform, referred to as ‘Benji,’ allows users to invest directly in FOBXX, Franklin Templeton’s tokenized money market fund.

Expansion to a Multi-Chain Approach

The transition to Solana marks another step in Franklin Templeton’s strategy to leverage multiple blockchain networks for its tokenized treasury assets. The company’s offerings have already been made available on a range of other blockchains, including Aptos, Ethereum, Avalanche, Arbitrum, Base, and Polygon. The Franklin OnChain U.S. Government fund initially launched on Stellar.

According to the firm, approximately 99.5% of FOBXX assets are invested in U.S. government securities, cash, and repurchase agreements, with the fund consistently maintaining a stable share price of $1. This stability is appealing to investors seeking reliable treasury-backed assets.

Joining Industry Leaders in Tokenization

Franklin Templeton’s entry into the Solana ecosystem places it alongside other financial giants such as BlackRock, Hashnote, Ondo, and OpenEden, which have also adopted a multi-chain strategy for tokenized treasury assets. BlackRock’s own BUIDL is supported on several blockchains, including Aptos, Arbitrum, Avalanche, and Optimism’s OP Mainnet. Meanwhile, Ondo’s USDY is operational on Solana, Mantle, Ethereum, and Aptos.

The Growing Market for Tokenized Real-World Assets

This expansion into Solana comes amid a significant rise in the demand for tokenized assets, particularly those backed by U.S. Treasuries. As of now, assets in this burgeoning space have surpassed $3.6 billion. Notably, Hashnote’s Short Duration Yield Note leads the field with a market capitalization of $1.1 billion, followed closely by Franklin Templeton’s offerings and the aforementioned BUIDL.

Current data from rwa.xyz illustrates that the market cap for real-world assets (RWA) on-chain has grown to over $17.2 billion, with approximately 110 asset issuers actively participating in this innovative financial landscape. The rise in tokenization has coincided with heightened interest in stablecoins, U.S. Treasury debt, private credit, and various institutional funds, signifying a paradigm shift in how traditional assets are increasingly integrated with blockchain technology.

In conclusion, Franklin Templeton’s expansion into Solana reinforces its commitment to providing cutting-edge financial products and aligns with the broader trend of integrating blockchain into mainstream finance. As demand for tokenized assets continues to grow, the firm is well-positioned within this evolving market landscape.