Franklin Templeton has officially launched its OnChain U.S. Government Money Fund (FOBXX) on the Aptos blockchain, marking a significant milestone in digital asset management.
This launch, in collaboration with the Aptos Foundation, enables institutional investors to access the FOBXX asset through digital wallets on Franklin Templeton’s blockchain-integrated Benji Investments platform utilizing the BENJI token. Investors can request to hold their wallets on the Aptos network.
The partnership aims to improve the interoperability of real-world and treasury-backed assets across non-EVM blockchain environments. Aptos Foundation's Head of Grants and Ecosystem, Bashar Lazaar, stated, "We need to connect not just the TradFi and DeFi worlds, but EVM and non-EVM networks as well."
The FOBXX fund invests in low-risk U.S. government securities, including various rate securities and repurchase agreements collateralized by U.S. government securities or cash. Following its initial launch on the Stellar blockchain, the fund has expanded to Polygon, Arbitrum, and Avalanche, with over $20 million in subscriptions upon its Aptos launch.
Franklin Templeton's Head of Digital Assets, Roger Bayston, emphasized the Aptos Network's unique characteristics that align with their rigorous standards for the Benji platform. He described this announcement as a critical step towards unlocking new asset management capabilities with blockchain technology.
Aptos is a new Layer 1 blockchain that utilizes the Move programming language, originally developed by a team from Meta. It aims to provide a faster and more scalable solution compared to other networks. Recent data indicates that monthly active addresses on Aptos have increased to 7.5 million as of September.
The FOBXX fund was the first U.S.-registered fund to use a public blockchain for transactions and share ownership. The market for tokenized government securities has grown significantly, reaching $2 billion. Franklin Templeton has faced competition, particularly from BlackRock’s BUIDL fund, which currently leads with a 25.2% market share.
Franklin Templeton continues to explore blockchain technology, having launched various crypto-related products and investing strategies since 2018.
