Franklin Templeton Expands Blockchain to Avalanche

Franklin Templeton Expands Blockchain Fund to Avalanche Network

Franklin Templeton has broadened its blockchain-based money market fund by integrating it with the Avalanche network. The Franklin OnChain U.S. Government Money Fund (FOBXX) is now accessible through digital wallets on the Benji platform, providing more investors with seamless access to this innovative financial product.

About the Franklin OnChain U.S. Government Money Fund

Launched in 2021, the Franklin OnChain U.S. Government Money Fund is the first U.S.-registered mutual fund that leverages public blockchain technology for trade processing and share ownership. By expanding to the Avalanche network, Franklin Templeton is enhancing the fund’s accessibility, allowing eligible institutional investors to hold digital wallets on the Avalanche network via the Benji Investments platform.

Why Avalanche?

Avalanche is gaining traction among financial institutions due to its:

• Compatibility with Ethereum Virtual Machine (EVM)
• Rapid transaction times and finality
• Low transaction fees
• Flexibility for digital asset management strategies

John Wu, President of Ava Labs, highlighted the alignment between Avalanche’s platform and Franklin Templeton’s vision for digital financial innovation, stating that this collaboration meets the current on-chain investor demand while integrating off-chain capital into the blockchain ecosystem.

Franklin Templeton’s Commitment to Blockchain Innovation

Since 2018, Franklin Templeton Digital Assets has been a pioneer in adopting blockchain technology, providing solutions, operating node validators, and developing various investment strategies. The company’s digital assets research team, consisting of tokenomics specialists, data scientists, and industry experts, plays a crucial role in creating new products and investments.

Enhanced Functionality of Benji Wallet

Each BENJI token corresponds to one share of the $420 million Franklin OnChain U.S. Government Money Fund. Franklin Templeton has enhanced the functionality of this fund, allowing Benji wallet holders to:

• Invest in FOBXX shares using USDC stablecoin
• Transfer shares peer-to-peer (P2P) on the public ledger

Future enhancements may include secondary market trading and improved collateral mobility within the fund.

Avalanche’s Growing Ecosystem

The integration of Avalanche with FOBXX comes as the network has seen significant growth, with its Total Value Locked (TVL) doubling since Q3 2023. However, as of 2024, Avalanche’s TVL has stabilized at around $1.12 billion, marking a slight decrease of 7.44% for the year. Additionally, the price of Avalanche’s native token, AVAX, has declined by 8% in the last 24 hours, trading at $24.

Franklin Templeton’s decision to extend FOBXX to the Avalanche network underscores the fund’s strategy to deploy assets across various blockchain networks, aiming to attract a broader investor base and enhance access to its tokenized treasuries fund.