Franklin Templeton Expands Money Market Fund to Ethereum Blockchain

In a notable expansion of blockchain use in asset management, Franklin Templeton has brought its $410 million OnChain U.S. Government Money Market Fund (FOBXX) to the Ethereum blockchain. The fund, which launched in 2021 as the first to utilize public blockchain for transaction tracking and ownership verification, now positions itself as the third-largest tokenized money market fund.

Franklin Templeton Embraces Multi-Chain Strategy

The move to Ethereum adds another blockchain network to the fund’s reach. Originally operating on Stellar, Franklin Templeton recently expanded to other blockchain networks, including Coinbase’s Base, Aptos, and Avalanche. The company’s diversification aligns with an industry trend toward adopting multiple chains for security, accessibility, and broader market participation.

“We aim to provide more options to investors and strengthen the fund’s reach within the tokenized asset space,” a spokesperson for Franklin Templeton shared, underscoring the firm’s commitment to expanding digital asset support.

Ethereum Dominates Tokenized Treasury Market

Ethereum continues to lead the tokenized treasury market with $1.6 billion in assets under management (AUM), accounting for roughly 71% of the market. Stellar, which remains Franklin Templeton’s primary blockchain, holds around 17%, while Solana follows with 5.8%. Smaller portions are spread across various other networks, such as Arbitrum, Optimism, and Sui, highlighting Ethereum’s central role in the evolving blockchain-based asset ecosystem.

This market dominance reflects Ethereum’s appeal among asset managers like Franklin Templeton, with high liquidity and a well-established infrastructure for tokenized assets.

Industry-Wide Blockchain Expansion

Franklin Templeton’s expansion aligns with broader industry trends as other prominent asset managers integrate blockchain. BlackRock, for instance, recently extended its USD Institutional Digital Liquidity Fund (BUIDL) to Aptos, Arbitrum, Avalanche, and Polygon, increasing access to its $545 million tokenized asset. As more firms embrace multi-chain strategies, experts predict enhanced investor options and improved scalability within blockchain-based finance.

The integration of Ethereum by Franklin Templeton further underscores the blockchain’s pivotal role in asset tokenization and sets the stage for future developments in digital asset management.