Asset management mogul Franklin Templeton has launched its Franklin OnChain US Government Money Fund (FOBXX) on Layer-1 blockchain Aptos.
The collaboration signifies growing institutional interest in further integrating traditional finance (TradFi) into decentralized finance (DeFi).
Franklin Templeton Launches FOBXX on Aptos
The American multinational holding company’s on-chain US Government Money Fund FOBXX, represented by the BENJI token, is now live on Aptos. This means institutional investors can access the asset in their digital wallets via Franklin Templeton’s blockchain-integrated Benji Investments platform and BENJI token.
The token received massive support at launch, recording more than $20 million in subscriptions upon debut. The frothing interest comes as it invests in low-risk US government securities with fixed, floating, and variable rates. It also repurchases agreements collateralized fully by US government securities or cash.
Noteworthy, Franklin Templeton’s FOBXX on Aptos is only available to eligible investors who can hold their wallets on the Aptos network, subject to request.
“We need to connect not just the TradFi and DeFi worlds, but EVM and non-EVM networks as well. Integrating the Benji Investments platform with the Aptos Network is a massive step in the right direction and we look forward to welcoming them to the Aptos ecosystem,” Aptos Foundation Head of Grants and Ecosystem Bashar Lazaar said.
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The decision enhanced Franklin Templeton’s commitment to unlock new asset management capabilities with blockchain technology. Evidence of this is seen with the FOBXX already active on four other blockchains — Stellar, Polygon, Arbitrum, and Avalanche.
The latest choice, Aptos, came as the global asset management giant pursues the Layer-1 blockchain’s unique characteristics, said to align with its suitability standards for the Benji platform. DefiLlama data corroborates this supposition, showing increased interest in the network.
With a total value locked (TVL) of $553.92 million, the Aptos network has more than doubled its assets deposited by liquidity providers since July 2024. Additionally, the number of monthly active addresses on the Aptos network has seen significant growth this year, reaching 7.5 million as of September.
The recent development advances Franklin Templeton’s reach in the tokenized securities space, given that FOBXX pioneered US-registered funds’ venture into public blockchain in 2021. From inception, the fund aimed to process transactions and record share ownership.
Other players in the space include BlackRock (BUIDL), and Ondo Finance (USDY). Their individual and joint participation has catapulted the sector to a $2.058 billion market, data on Dune shows.
As shown below, BlackRock’s BUIDL is the leader in the space, accounting for 25.2% of the market share. In April, it sidestepped Franklin Templeton’s fund.
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These reports highlight how traditional finance is progressively showing interest in the DeFi space. Recently, Grayscale launched AVAX trust, expanding its crypto investment portfolio with the latest focus on Avalanche. Meanwhile, Goldman Sachs is also reportedly planning three tokenization projects this year.
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