Franklin Templeton's FOBXX Fund Now Trading on Ethereum, Highlighting Blockchain's Leading Role in Tokenized Assets

Franklin Templeton's OnChain U.S. Government Money Market Fund, known as FOBXX, is now available for trading on Ethereum. This is the second-largest blockchain by market cap.

The fund has already been launched on several other blockchains, including Base, Aptos, and Avalanche. Among issuers, Ethereum stands out as the top choice, managing an impressive $1.6 billion in tokenized assets.

FOBXX made its debut in 2021. It became the first money market fund to use a public blockchain for tracking transactions and ownership. Currently, it has a market cap of $410 million, making it the third-largest tokenized money market fund.

Just six weeks after launching in late March, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has surged to the top, with a market cap of $545 million. Following closely is Ondo’s U.S. Dollar Yield (USDY), which stands at $452 million.

When it comes to issuing shares of tokenized treasuries, Ethereum leads the way. It handles over $1.6 billion in assets, significantly more than Stellar (XLM) and Solana (SOL), according to data from rwa.xyz.

In a report from April, Grayscale highlighted Ethereum's strengths. They noted that it is “meaningfully decentralized and credibly neutral for network participants.” This quality makes it a strong candidate for a global platform for tokenized assets. It’s essential for any successful implementation of smart contracts in the world of asset tokenization.