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Franklin Templeton has extended its OnChain US Government Money Market Fund (FOBXX) to Coinbase’s Ethereum-based layer-2 (L2) Base network.
The expansion, announced on October 31, marks the first time a major asset manager has launched on Coinbase’s Base, showcasing Franklin Templeton’s strategic embrace of blockchain technology in traditional finance.
New chain unlocked. Benji, our proprietary blockchain-integrated recordkeeping system, is now live on @base! With this announcement, Franklin Templeton is the first asset manager to build a tokenized fund on Base. Base is a layer 2 blockchain built on Ethereum designed to…
FOBXX currently on five blockchain networks
Franklin Templeton’s OnChain US Government Money Market Fund (FOBXX) was initially launched in 2019 on the Stellar blockchain, making it one of the pioneers in bringing traditional assets into the digital space.
At a market capitalization of $410 million, FOBXX is one of the largest tokenized funds globally. It offers exposure to US government securities, cash, and repurchase agreements, providing investors with a blockchain-based, decentralized option for secure asset management.
Franklin Templeton’s Benji Investments mobile app supports digital wallets where investors can hold FOBXX shares, allowing users an intuitive platform for managing their investments on-chain.
Since its launch, FOBXX has expanded onto multiple blockchain networks, including Avalanche, Arbitrum, Polygon, and most recently, the layer-1 Aptos blockchain.
Notably, according to Roger Bayston, Head of Digital Assets at Franklin Templeton, the fund’s expansion to Aptos was because of Aptos’ compatibility with the company’s operational standards on the Benji platform.
Franklin Templeton taps into Base’s transaction capabilities
With Coinbase’s Base, the fund now operates on six distinct blockchain networks, giving investors a wide range of access points and emphasizing Franklin Templeton’s commitment to multi-chain integration.
Coinbase’s Base network, an Ethereum scaling solution, is designed to facilitate faster and more affordable transactions while supporting decentralized finance (DeFi) applications.
This integration allows Franklin Templeton to tap into Base’s streamlined transaction capabilities and an expanding audience of blockchain users.
Coinbase itself reported a 55% increase in Base’s transaction volume quarter-over-quarter, emphasizing the platform’s growing influence and widespread adoption in the crypto industry.
Anthony Bassili, Coinbase’s Head of Tokenization, highlighted the strategic implications of Franklin Templeton’s move, stating that the fund’s adoption of Base signals a positive shift toward on-chain finance by traditional asset managers.
As more financial institutions recognize the potential of blockchain technology for efficient and secure transactions, Franklin Templeton’s expansion could pave the way for similar transitions by other asset managers.
With a clear strategy toward integrating tokenization and digital finance, Franklin Templeton is positioning itself at the forefront of blockchain adoption within traditional finance.
As the interest in tokenized assets continues to rise, Franklin Templeton’s initiatives on both Base and Aptos offer a robust example of how blockchain technology can transform the future of asset management.
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