Franklin Templeton is launching its tokenized money fund on Base, Coinbase’s layer-2 network, the asset manager said on Oct. 31.
The Franklin OnChain US Government Money Fund (FOBXX) is the first tokenized fund to launch on Base, Franklin Templeton said in a post on the X platform.
Created in 2021, FOBXX has previously launched on blockchain networks including Stellar, Polygon and Arbitrum.
RWA value by segment. Source: RWA.xyz
Related: Franklin Templeton’s tokenized money fund launches on Arbitrum
Franklin Templeton is unique among tokenized fund managers in outsourcing a meaningful portion of reporting requirements — such as share ownership records typically handled by an offchain transfer agent — to blockchain networks’ public ledgers.
“We are currently the only product with the ability to use public distributed ledger technologies for official transaction record-keeping,” Roger Bayston, Franklin Templeton’s head of digital assets, told Cointelegraph in July.
The launch of FOBXX on Base indicates United States regulators consider Base’s public ledger to be a legitimate instrument for financial recordkeeping.
Money funds generate low-risk yields for investors by holding highly liquid assets such as short-dated Treasury bills and commercial paper.
Franklin Templeton’s FOBXX currently has net assets of approximately $435 million and has been generating annualized returns of about 4.7% as of October 2024.
It is accessible through Franklin Templeton’s Benji Investments platform.
The Base launch marks Franklin Templeton’s latest effort to enhance the accessibility of its tokenized real-world assets (RWAs).
Since its 2023 launch, Base has emerged as Ethereum’s second most popular layer-2 scaling solution, with a total value locked (TVL) of approximately $8 billion, according to L2Beat.
Arbitrum leads with upward of $13 billion in TVL, the data shows.
Tokenized RWAs — from money funds to artworks — represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph in August.
Demand is surging for products that tokenize T-bills and other highly liquid yield-bearing assets.
FOBXX’s top rival is BlackRock USD Institutional Digital Liquidity Fund, with assets under management of approximately $530 million, according to data from RWA.xyz.
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