- Franklin Templeton’s FOBXX is the first U.S. fund to use public blockchain for transactions, now accessible on Arbitrum.
- Since 2021, FOBXX has a $420M market cap, making it the third-largest U.S. Treasury-linked blockchain product.
- FOBXX on Arbitrum bridges traditional finance with blockchain, expanding digital asset access via the Benji platform.
Global asset manager Franklin Templeton has partnered with the Arbitrum Foundation to launch the Franklin OnChain US Government Money Fund (FOBXX) on the Arbitrum network , the leading Ethereum Layer 2 blockchain.
This initiative, announced on August 8, marks a substantial move towards integrating blockchain technology with traditional financial services. The fund, accessible via Franklin Templeton’s Benji Investment Platform, offers investors a bridge to digital asset investments, reinforcing the collaboration between conventional finance and burgeoning blockchain capabilities.
Strategic Expansion into Blockchain
This collaboration introduces the FOBXX fund to the Ethereum layer 2 solution, aiming to extend the reach of digital assets to a broader audience. Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasized the importance of this step in the evolution of asset management services.
FOBXX, which commenced in 2021, is the first US fund to employ a public blockchain for managing transactions and recording ownership. With a market cap of $420 million, it is the third-largest U.S. Treasury-linked product recorded on-chain.
The fund’s deployment on Arbitrum follows its tokenization on other platforms, such as Stellar and Polygon.
Growth of Tokenization in Financial Markets
The concept of tokenization is gaining momentum as more financial institutions recognize its potential to transform asset management. The process involves converting rights to an asset into a blockchain digital token, facilitating more accessible, faster, and more secure transactions.
As institutions like BlackRock and other crypto-native startups such as Securitize and Ondo Finance explore tokenization, Franklin Templeton’s early adoption with FOBXX positions it as a leader in integrating blockchain solutions into mainstream financial services.
Enhancing Investor Access and Financial Solutions
The integration of the Arbitrum network with Franklin Templeton’s proprietary platform is set to enhance the scalability and efficiency of financial services. Steven Goldfeder, an Arbitrum project contributor, noted that the collaboration aligns with Arbitrum’s mission to foster innovation within the financial sector.
FOBXX’s availability on this network allows it to reach previously untapped markets, offering investors innovative ways to engage with digital assets.
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