Franklin Templeton, a prominent global investment firm managing approximately $1.6 trillion in assets, is expanding its blockchain presence by introducing its unique tokenized money market fund to the Avalanche network. The Franklin OnChain U.S. Government Money Market Fund (referred to as FOBXX or the Fund) was launched in 2021 and stands as the first and only U.S.-registered mutual fund that utilises a public blockchain for recording transactions and share ownership. With a continually broadening scope, the growth in tokenized assets has attracted a diverse array of institutional participants to Avalanche’s technology in recent years.
Each share of the Fund, which currently manages around $420 million, is represented by a single BENJI token. Investors can easily access the Fund by utilising the Benji Investments application. Franklin Templeton has also rolled out enhancements that increase the utility of the fund compared to conventional financial infrastructures. BENJI wallet holders now have the opportunity to convert USDC stablecoins to invest in shares of FOBXX and can also transfer their shares peer-to-peer via the public blockchain. Future prospects may include additional utilities for the fund, such as secondary market trading and the mobility of collateral.
Market Size for US Money Market Funds Rises
The market for tokenized U.S. money market funds (MMFs) has reached $1.81 billion, spurred by the capacity of blockchain-enabled funds to provide a broader array of functionalities. Investors are increasingly on the lookout for returns on their tokenized fiat assets. As the landscape evolves, institutions are exploring the integration of blockchain, smart contract, and tokenization technologies to enhance financial services infrastructure and streamline institutional workflows.
A variety of institutional entities, both from the sell side and the buy side, have been capitalising on the Avalanche network to execute their digital asset strategies. The appeal of Avalanche lies in its compatibility with the Ethereum Virtual Machine (EVM), rapid transaction finality that occurs in under a second, minimal transaction costs, and the capability for customization, along with its reliability—all of which make it an attractive option for institutional deployments. These institutions are particularly attracted to the comprehensive suite of enterprise-grade infrastructure that Avalanche provides, in addition to an increased focus on tokenization and finance on the blockchain.
“I am excited to see the Franklin OnChain U.S. Government Money Fund being supported by the Avalanche platform,” expressed John Wu, President of Ava Labs. “Franklin Templeton is committed to creating innovative digital financial products and services that will satisfy the demands of on-chain investors today, as well as draw off-chain capital and users into the ecosystem in the future.”
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Franklin Templeton’s Digital Assets Endeavors
Since 2018, Franklin Templeton Digital Assets has been continuously developing blockchain-based technology solutions, operating node validators, and formulating a diverse range of investment strategies. The firm’s dedicated digital assets research team employs fundamental “tokenomic” analyses, insights from an embedded data science team, and strong industry connections to guide product development and investment strategies.
“By bringing the Benji platform to the Avalanche ecosystem, we are further enhancing access to our pioneering tokenized money market fund,” stated Roger Bayston, Head of Digital Assets at Franklin Templeton. “We eagerly anticipate collaborating with Avalanche’s dynamic developer community to introduce new blockchain-enabled innovations to the market.”
Given the pivotal and foundational role of Tokenized Money Market Fund in financial markets, Benji represents a crucial component in the rapidly developing Avalanche ecosystem. This alliance underscores Avalanche’s expansion of institutional infrastructure and fundamental components as it propels the advancement of financial services.
Conclusion
Individual investors looking to access the tokenized money market fund, FOBXX, can do so through the Benji Investments app, which is available on mobile app stores for both Android and Apple devices. For institutional investors, there is an option to gain access through the Benji Institutional web portal, Franklin Templeton’s proprietary blockchain-integrated recordkeeping system. Those investors may request to hold their wallets on the Avalanche network, subject to certain eligibility requirements.
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