Franklin Templeton has made a significant announcement regarding its OnChain U.S. Government Money Market Fund, which has a market capitalization of $410 million. As of October 31, 2024, the fund has been expanded to include Coinbase’s layer-2 Base network, marking a milestone as the first asset manager to launch a tokenized fund on this blockchain platform.
Pioneering Blockchain Integration
With the integration of the Base network, Franklin Templeton has positioned itself as a trailblazer in the realm of traditional finance. The company’s proprietary recordkeeping system, Benji, is now operational on the Base blockchain, enabling a seamless interaction between on-chain assets and financial instruments.
This move signifies a broader trend of traditional financial institutions increasingly exploring and adopting blockchain technology. By launching on Base, Franklin Templeton illustrates its commitment to modernizing asset management through the benefits of blockchain’s decentralized architecture.
Broadened Access to Investment Opportunities
The OnChain U.S. Government Money Market Fund is now accessible on six different blockchains, including notable networks like Stellar and Arbitrum. This diversification allows for a more inclusive trading environment, offering a decentralized platform for managing government-backed investments.
Since its inception in 2021, the fund has experienced impressive growth, earning its place among the world’s leading tokenized funds thanks to its innovative approach to integrating blockchain technology with traditional finance.
Anthony Bassili, the head of tokenization at Coinbase, noted that Franklin Templeton’s expansion onto Base highlights a growing trend among asset managers embracing on-chain assets. “This venture by a notable asset manager serves as a clear indication of what’s in store for the future,” he stated. “Companies like Franklin Templeton are taking full advantage of the efficient, low-cost nature of blockchain technology to redefine financial systems.”
Recent Ventures into Other Blockchains
In addition to its recent developments on Base, Franklin Templeton also launched its government money fund on the Aptos layer-1 blockchain earlier in October 2024. The choice of Aptos was strategic, as the network’s distinctive features aligned closely with Franklin Templeton’s rigorous requirements for the Benji platform.
Roger Bayston, the head of digital assets at Franklin Templeton, emphasized the importance of these blockchain expansions. “Our strategies include investment in cryptocurrencies via ETFs as well as the tokenization of traditional assets like government securities,” he explained. The firm’s ambitious projects reflect a commitment to harnessing blockchain technology to enrich and streamline asset management processes.