Franklin Templeton Invests $410M in Coinbase’s Base Layer-2

Franklin Templeton Launches Tokenized Fund on Coinbase’s Base Layer-2

Franklin Templeton has made headlines by introducing its tokenized fund to Coinbase’s Base, an Ethereum layer-2 network. This move reportedly makes Franklin Templeton the first asset manager to join this innovative Ethereum scaling solution.

Introduction of OnChain U.S. Government Money Market Fund (FOBXX)

The wealth manager announced the launch of its OnChain U.S. Government Money Market Fund (FOBXX) on Coinbase’s layer-2 network. Investors can now access this fund directly through the exchange.

Benji Investment Application Now Available on Base

In a recent post on X (formerly Twitter), Franklin Templeton revealed that its blockchain recordkeeping system, Benji, is now operational on Coinbase’s layer-2 Base. This launch accompanies the availability of the OnChain U.S. Government Money Market Fund (FOBXX) on the exchange’s L2 Ethereum network. With this integration, investors can:

• Buy shares of FOBXX
• Hold shares in digital wallets
• Access the Benji Investments mobile app

Insights from Coinbase

Anthony Bassili, head of tokenization at Coinbase, commented on the significance of Franklin Templeton’s move:

This is the first large asset manager to directly launch on Base, a clear signal to investors and issuers of what’s to come.

Base Layer-2 Gains Traction in the Crypto Community

So far, the Base layer-2 network has gained considerable traction among crypto enthusiasts. According to Coinbase’s Q3 earnings report, the number of transactions on Base rose by 55% quarter-over-quarter. The platform has contributed significantly to building Coinbase’s reputation and position in on-chain activity.

Strong Performance Metrics for Base

According to data from L2Beat, Base holds over $8 billion in total value locked (TVL), surpassing multiple competitors in the space.

Expansion of Tokenized Fund Services

The tokenized fund FOBXX already boasts over $410 million in assets and has launched on five other blockchain networks:

• Arbitrum
• Polygon
• Avalanche
• Aptos
• Stellar

Recent Developments in Other Networks

At the beginning of October, Franklin Templeton’s tokenized fund was welcomed onto Aptos’ layer-1 blockchain. The asset manager chose Aptos due to its suitability for the Benji platform.

Prior to Aptos, Franklin Templeton launched its fund on the Avalanche network. Roger Bayston, head of Franklin Templeton’s digital assets, remarked that the Avalanche ecosystem offered a robust network capable of delivering high-quality features to customers.

Additionally, Morgan Krupetsky, Head of Capital Markets and Institutions at Ava Labs, expressed enthusiasm about collaborating with Franklin Templeton.

Fund Operations Across Multiple Networks

Franklin Templeton’s FOBXX primarily operates on the Stellar network, while investors also have the option to trade shares using Polygon and Arbitrum.