In a groundbreaking move, Franklin Templeton has introduced its tokenized money fund on the Arbitrum network, a significant step in merging traditional finance with decentralized finance. Announced on August 8, this launch signifies Franklin Templeton’s ongoing commitment to integrating digital and conventional financial systems.
The fund in question, the Franklin OnChain U.S. Government Money Fund (FOBXX), was first launched in 2021 and is now accessible on the Arbitrum network, alongside other platforms like Stellar and Polygon. This expansion aims to enhance the fund’s reach and accessibility, aligning with Franklin Templeton’s goal to make tokenized real-world assets (RWAs) more widely available.
FOBXX, which currently holds around $420 million in assets, is designed to provide investors with low-risk yields through investments in highly liquid assets such as short-term Treasury bills and commercial paper. As of mid-2024, the fund has achieved annualized returns of about 5.25%. The decision to launch FOBXX on Arbitrum is seen as a major endorsement of the layer-2 solution, reflecting confidence from U.S. regulators in Arbitrum’s capabilities for financial record-keeping.
Arbitrum, a leading layer-2 scaling solution for Ethereum, boasts a total value locked (TVL) of approximately $14 billion, showcasing its growing significance in the blockchain ecosystem. Franklin Templeton’s move to integrate FOBXX with Arbitrum underscores its strategy to leverage blockchain technology for scalable and efficient financial solutions.
Roger Bayston, Franklin Templeton’s head of digital assets, highlighted the importance of this expansion, noting that it represents a crucial step in the company’s journey to enhance asset management through blockchain. Steven Goldfeder, CEO of Arbitrum-developer Offchain Labs, echoed this sentiment, emphasizing the alignment with their mission to advance financial technology.
This launch follows Franklin Templeton’s previous introductions of FOBXX on Stellar and Polygon. The inclusion of Arbitrum marks a continued effort to broaden the fund’s availability to investors and integrate decentralized finance into traditional financial markets.
