Franklin Templeton, a global asset management giant, has significantly expanded the reach of its tokenized OnChain US Government Money Market Fund (FOBXX) by integrating with two major blockchain networks: Coinbase's layer-2 Base and the enterprise-focused VeChain.
The expansion to Coinbase's Base network, announced on October 31, 2024, marks a strategic milestone as Franklin Templeton becomes the first major asset manager to build a tokenized fund directly on Base. This move leverages Franklin Templeton's proprietary blockchain-integrated recordkeeping system, Benji. The integration aims to tap into Base's capabilities for faster, more affordable transactions and its growing user base, which saw a 55% quarter-over-quarter increase in transaction volume according to Coinbase.
"With this announcement, Franklin Templeton is the first asset manager to build a tokenized fund on Base," stated the firm's digital assets team. Anthony Bassili, Coinbase’s Head of Tokenization, highlighted the significance, noting it signals a positive shift toward on-chain finance by traditional asset managers.
In a separate but related development, Franklin Templeton partnered with VeChain in July 2024 to deploy its BENJI platform on the layer-1 blockchain. This integration provides VeChain-based businesses with access to the tokenized money market fund as a stablecoin-like tool for payments and cash management. The initiative involves BitGo as the custody partner and Keyrock for derivatives trading services.
The FOBXX fund, with a market capitalization reported between $410 million and $780 million, is one of the largest and most widely held tokenized funds globally. It offers exposure to US government securities, cash, and repurchase agreements, maintaining a stable $1 value per BENJI token. Initially launched on the Stellar blockchain in 2019, the fund has since expanded to a multi-chain presence that now includes Ethereum, Arbitrum, Polygon, Avalanche, Aptos, and the newly added Base and VeChain networks.
Franklin Templeton's aggressive expansion underscores its leadership in the Real-World Asset (RWA) tokenization sector. The firm was also selected by ArbitrumDAO to manage part of its treasury diversification program and recently received regulatory approval to launch a tokenized fund for retail investors in Singapore.
