Originally published on: October 31, 2024
Franklin Templeton has made a groundbreaking move by launching its tokenized money fund, the Franklin OnChain US Government Money Fund (FOBXX), on the Base network, Coinbase’s layer-2 platform. This marks the first tokenized fund to debut on Base, further solidifying Franklin Templeton’s position as a leader in the digital asset space.
Originally established in 2021, FOBXX has previously been introduced on various blockchain networks, including Stellar, Polygon, and Arbitrum. The fund has quickly gained traction, boasting net assets of approximately $435 million and delivering annualized returns of around 4.7% as of October 2024.
One key factor that sets Franklin Templeton apart from other tokenized fund managers is its innovative approach to reporting requirements. By leveraging blockchain networks’ public ledgers, the asset manager has streamlined official transaction record-keeping, paving the way for enhanced transparency and efficiency.
The decision to launch FOBXX on Base highlights the growing recognition of Base’s public ledger as a legitimate tool for financial recordkeeping by United States regulators. As the second most popular layer-2 scaling solution on Ethereum, Base has quickly become a go-to platform for tokenizing real-world assets and unlocking new opportunities for investors.
With a total value locked (TVL) of approximately $8 billion, Base has garnered significant interest from the DeFi community, positioning itself as a key player in the evolving landscape of digital finance. As demand for tokenized assets continues to soar, products like FOBXX offer investors access to low-risk, high-liquidity opportunities, such as Treasury bills and commercial paper.
Overall, the launch of Franklin Templeton’s tokenized money fund on Base represents a major milestone in the digital asset space, signaling a new era of innovation and accessibility for investors. As the market for tokenized RWAs continues to expand, Franklin Templeton is at the forefront of driving meaningful change and empowering investors to make informed decisions with confidence.
