Franklin Templeton, a renowned investment manager with over $1.4 trillion in assets under management, has recently expanded its tokenized US treasuries fund, Franklin OnChain U.S. Government Money Fund (FOBXX), to Aptos, a Layer-1 blockchain powered by the Move programming language.
FOBXX is a regulated 1940 act fund that primarily invests in government securities and other financial instruments collateralized by government securities. Aptos now joins Avalanche, Arbitrum, Stellar, and Polygon as the fifth blockchain to be integrated into the FOBXX fund.
This move is seen as a significant step towards bridging traditional finance with decentralized networks. Franklin Templeton has been at the forefront of embracing cryptocurrency and blockchain technology, having successfully launched spot Bitcoin and Ethereum ETFs earlier this year.
Despite the news of Franklin Templeton’s expansion, the Aptos APT token has experienced a slight dip in value, trading at $7.76 at the time of writing.
Roger Bayston, Head of Digital Assets at Franklin Templeton, cited Aptos’ compatibility with the firm’s Benji blockchain-integrated system as the reason for choosing to expand to the Aptos Network. He emphasized that Aptos met their stringent suitability standards for the Benji platform.
Since its launch in October 2022, Aptos has seen substantial growth, becoming one of the top 25 digital assets by market capitalization. The network boasts a high daily transaction volume, exceeding 3 million, and over $545 million in total value locked in DeFi activities.
FOBXX, launched in 2021, allows investors to invest in U.S. government securities, cash, and repurchase agreements. It was the first U.S.-registered mutual fund to adopt blockchain technology, initially utilizing Stellar. FOBXX shares are tokenized and represented by the BENJI token, maintaining equal value.
Investors can purchase FOBXX shares and store them in digital wallets using Franklin Templeton’s Benji Investments mobile app. Currently managing over $435 million in assets, FOBXX is the second-largest tokenized fund globally, according to rwa.xyz.
Franklin Templeton has hinted at further expanding its mutual fund to the Solana blockchain in the future. This strategic move towards blockchain integration highlights the firm’s commitment to embracing innovative technologies in the financial industry.