Franklin Templeton Expands Trading of FOBXX Tokenized Securities

Franklin Templeton has expanded the trading of its FOBXX tokenized government securities money market fund to the Ethereum blockchain. The Franklin OnChain U.S. Government Money Fund (FOBXX), represented by the BENJI token, was launched in 2021 as the first money market fund to use a public blockchain for transaction and ownership tracking.

The move follows Franklin Templeton’s recent addition of new blockchains to support the fund this year, most recently the Aptos blockchain.

According to Franklin Templeton, 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."

Recent data from rwa.xyz shows that tokenized Treasurys have risen nearly 2% in the past seven days. Dune Analytics indicates that total assets under management (AUM) in tokenized government securities now stand at $2.329 billion. Among these, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) leads with $513.47 million AUM and 22% market share, followed by Franklin Templeton’s FOBXX fund at $409.93 million AUM and 17.6% market share across Ethereum, Arbitrum, Avalanche, Polygon, and Stellar.

BlackRock's BUIDL fund is also expanding its presence across various blockchains. It is now deployed on Aptos, Optimism’s OP Mainnet, Polygon, Arbitrum, and Avalanche. BUIDL was initially launched on Ethereum in collaboration with Securitize.

"Real-world asset tokenization is scaling, and we're excited to have these blockchains added to increase the potential of the BUIDL ecosystem. With these new chains, we'll start to see more investors looking to leverage the underlying technology to increase efficiencies on all the things that until now have been hard to do," said Securitize CEO and co-founder Carlos Domingo.

Ethereum remains the dominant blockchain for tokenized Treasury issuances, and its total real-world asset value now stands at $2.96 billion.