Franklin Templeton Expands Tokenized Fund to Solana and Base, Signaling Major Institutional Blockchain Adoption

Franklin Templeton, a global investment giant with $1.5 trillion in assets under management, has significantly expanded the reach of its OnChain US Government Money Market Fund (FOBXX) by launching on two major blockchain networks: Coinbase's Ethereum layer-2 Base and Solana. This multi-chain strategy underscores a strategic push by traditional finance into the digital asset space.

The expansion to Coinbase's Base network was announced on October 31, 2024, marking the first time a major asset manager has built a tokenized fund directly on Base. Franklin Templeton utilizes its proprietary blockchain-integrated recordkeeping system, Benji, for this integration. The move allows the firm to tap into Base's growing ecosystem, which reported a 55% quarter-over-quarter increase in transaction volume. Anthony Bassili, Coinbase’s Head of Tokenization, highlighted this as a positive shift toward on-chain finance by traditional asset managers.

Subsequently, on February 12, 2025, Franklin Templeton launched the FOBXX fund on the Solana blockchain. This launch followed closely on the heels of the firm filing for a Solana exchange-traded fund (ETF) in Delaware, signaling deeper institutional interest in the network. The expansion onto Solana capitalizes on the network's remarkable performance; a Messari report showed Solana applications accrued $840 million in revenue in Q4 2024, a 213% surge quarter-over-quarter. Furthermore, Pantera Capital's report indicated over 90% of new digital assets on decentralized networks were Solana-issued, a massive increase from just 1% in December 2024.

The FOBXX fund, with a market capitalization of $410 million, is one of the world's largest tokenized funds. It offers exposure to US government securities, cash, and repurchase agreements. Initially launched on the Stellar blockchain in 2019, the fund now operates on six distinct networks: Stellar, Avalanche, Arbitrum, Polygon, Aptos, and now Base and Solana. Roger Bayston, Head of Digital Assets at Franklin Templeton, noted that compatibility with the firm's Benji platform was a key factor in choosing networks like Aptos.

These expansions are viewed as a bellwether for the tokenization of real-world assets (RWA). By integrating with high-performance, scalable networks like Base and Solana, Franklin Templeton is positioning itself at the forefront of blockchain adoption in traditional finance, potentially paving the way for other major asset managers to follow suit.