Global asset management firm Franklin Templeton has expanded its blockchain presence by launching its OnChain U.S. Government Money Fund (FOBXX) on Arbitrum, the largest Ethereum Layer 2 network. This move follows a partnership with the Arbitrum Foundation and allows investors to access FOBXX through Franklin Templeton’s Benji Investments platform and BENJI token. The fund was initially launched on the Stellar blockchain and expanded to Polygon earlier this year.
The integration of FOBXX into the Arbitrum network marks a significant step in merging traditional finance with decentralized finance (DeFi). Roger Bayston, Franklin Templeton’s Head of Digital Assets, emphasized the firm’s commitment to enhancing its asset management capabilities with blockchain technology. “Expanding into the Arbitrum ecosystem is an important step on our journey,” Bayston noted, highlighting the opportunities this move will unlock for both the firm and its clients.
Steven Goldfeder, CEO and co-founder of Arbitrum core contributor Offchain Labs, expressed excitement about the partnership, stating that Franklin Templeton’s involvement aligns with Arbitrum’s mission to provide scalable solutions for the financial sector.
Arbitrum continues to dominate the Ethereum Layer 2 space, holding $2.6 billion in total value locked, which represents a 34% market share. Despite recent competition from other networks like Coinbase’s Base, Arbitrum remains a key player in the Layer 2 landscape.
FOBXX is notable for being the first U.S.-registered fund to use a public blockchain for transaction processing and share ownership recording, having launched in 2021. The tokenized government securities market has since grown to $1.8 billion, with Franklin Templeton initially leading the space. However, recent competition from BlackRock’s BUIDL fund, which is tokenized on Ethereum, has challenged Franklin Templeton’s dominance. BUIDL now leads the market with $519 million in assets under management, while FOBXX holds $402 million, securing a 22% market share.
Franklin Templeton has a strong history of blockchain innovation, including running node validators and developing crypto investment strategies since 2018. The firm has also launched spot Bitcoin and Ethereum ETFs, further solidifying its presence in the digital asset space.
With the launch of FOBXX on Arbitrum and its ongoing exploration of new crypto funds, Franklin Templeton continues to be at the forefront of integrating blockchain technology with traditional financial products. This latest development underscores the growing importance of tokenized assets in the global financial system and Franklin Templeton’s role in leading this transformation.
