Franklin Templeton Launches Blockchain Money Fund on Avalanche

Fund Overview

The FOBXX fund, valued at $402 million, offers investors access to U.S. treasuries through a tokenized structure. Each share of the fund is represented by a BENJI token, which can be accessed via the Benji Investments app. This innovation provides a streamlined investment experience for users.

Avalanche Integration Improves Access

Franklin Templeton selected the Avalanche network due to its low transaction fees and rapid processing capabilities. This integration benefits investors and business owners in several ways:

• Lower costs for transactions
• Faster access to funds
• Peer-to-peer share transfers, which traditional finance does not support

Additionally, investors can exchange USDC stablecoin for FOBXX shares, simplifying blockchain investments and highlighting the growing adoption of technology in financial services.

Growth in the Tokenized Treasuries Market

The tokenized U.S. Treasury market is expanding rapidly, with its total value exceeding $1.92 billion. Key players in this market include:

• Ethereum: Over $1.3 billion in assets
• Stellar: $434 million
• Solana: $48 million

Franklin Templeton’s FOBXX currently holds a market cap of over $424 million, making it a strong competitor to BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which has a market cap of $502 million. The growth of these funds illustrates the increasing interest in tokenizing traditional financial products.

Franklin Templeton Expands Digital Reach

Having been engaged in blockchain technology since 2018, Franklin Templeton continues to expand its digital footprint. The firm has developed blockchain solutions and acts as a validator on multiple networks, leveraging data to inform its strategies in the digital asset space.

Recently, the company expanded FOBXX’s reach by launching it on the Ethereum blockchain through Arbitrum, a solution aimed at enhancing transaction speeds. This move further underscores Franklin Templeton’s commitment to embracing blockchain technology and innovating within the financial sector.