Franklin Templeton’s Blockchain Fund Launches on Ethereum Layer-2 Arbitrum - Decrypt
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Franklin Templeton’s Blockchain Fund Launches on Ethereum Layer-2 Arbitrum
The money-market fund is launching on the Ethereum scaling network as interest in tokenized funds surges. Global asset manager Franklin Templeton’s blockchain-based money market fund has launched within the Arbitrum ecosystem
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Summary
- 🚀 **Launch on Arbitrum**: Franklin Templeton's blockchain-based money market fund, FOBXX, has launched on the Ethereum Layer-2 scaling solution, Arbitrum, to enhance accessibility for investors.
- 📈 **Growing Interest in Tokenized Funds**: The launch comes amid increasing demand for tokenized real-world asset (RWA) funds, with notable examples like BlackRock's BUIDL fund generating significant dividends.
- 💰 **Investment Strategy**: FOBXX primarily invests at least 99.5% of its assets in U.S. government securities, cash, and fully collateralized repurchase agreements, aiming for high returns.
- 🔒 **Focus on Security and Scalability**: Franklin Templeton emphasizes the importance of network cost, resiliency, and scalability in building its wallet infrastructure for the fund.
- 🌍 **Retail Investor Accessibility**: The move to Arbitrum is part of Franklin Templeton's strategy to broaden access to the fund for retail investors, responding to consumer demand in the evolving digital asset landscape.
Top Highlights
- Franklin Templeton’s Blockchain Fund Launches on Ethereum Layer-2 Arbitrum The money-market fund is launching on the Ethereum scaling network as interest in tokenized funds surges.
- Global asset manager Franklin Templeton’s blockchain-based money market fund has launched within the Arbitrum ecosystem, as real-world asset (RWA) tokenized funds gain traction among investors. Arbitrum is a popular scaling solution for Ethereum. Franklin Templeton’s Nasdaq-listed OnChain U.S. Government Money Fund, FOBXX, became accessible in dig...
- “The cost of using the network [and] the resiliency and the scalability of the network are all… factors that we take into consideration when we are building [FOBXX’s] wallet infrastructure into various blockchain ecosystems,” Franklin Templeton head of digital assets Roger Bayston told Decrypt on Thursday. “We're all about listening to the consum...
- FOBXX’s widening accessibility to investors comes at a time when demand for tokenized real-world asset funds is sky-high. The largest such fund, BlackRock's BUIDL fund, has paid out $7 million in dividends since its launch in March. The tokenized treasury market more than doubled to $1.8 billion from January to June 2024, according to a Dune dashbo...
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