Franklin Templeton Launches OnChain US Government Money Fund on Solana

In a recent update, Franklin Templeton Franklin Templeton - Financial Service ProviderInvestment banking has launched the OnChain U.S. Government Money Market Fund (FOBXX), the third-largest tokenized money market fund, on Solana, highlighting increasing interest in blockchain.

Franklin Templeton announced the development. The asset manager highlighted Solana’s speed, security, and censorship-resistance, promoting global adoption through its open infrastructure.

Fund Available On Multiple Networks

This move reflects the growing interest of major financial companies in cryptocurrency-based products, strengthening Solana’s position as a key digital asset.

FOBXX, which aims to maintain a stable $1 share price like a stablecoin, the fund is already available on the Ethereum, Base, Polygon, Avalanche, Aptos, and Arbitrum networks. Its first blockchain integration was with Stellar, about four years ago. Notably, the fund invests at least 99.5% of its total assets in U.S. government securities, cash and repurchase agreements collateralized fully by U.S. government securities or cash.

Launched in 2021, FOBXX has reached a $594 million market cap, according to rwa.xyx data. It trails behind Hashnote’s USYC and BlackRock’s BUIDL in size.

SOL ETF Soon?

The launch of the money fund on Solana comes a day after Franklin Templeton filed in Delaware for a Solana ETF. This move likely signals that the asset manager may soon file with the US SEC to offer a Solana ETF. Last year the asset manager praised Solana, predicting SOL would become the third-largest crypto after Bitcoin and Ethereum, and the top choice for future crypto users.

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Besides, recently in a CNBC interview, Anthony Scaramucci said that he’s putting his money on Solana. He noted that while his firm holds some Ethereum, he’s more bullish on Solana due to its low fees and fast transaction speeds. He believes Solana will lead the way in tokenization, especially if traditional financial assets like stocks and bonds are tokenized. He added that Solana would be the obvious choice in that scenario.

Tokenization is a fast-growing sector for crypto. It represents a multitrillion-dollar market opportunity, according to forecasts from BCG, McKinsey, and Brevan Howard.Besides, Larry Fink, the CEO of BlackRock, has long supported the tokenisation drum. He said in 2022 that tokenisation is the future of markets, and BlackRock already rolled out a tokenised fund to test the waters.