Franklin Templeton Launches Onchain US Fund on Aptos Blockchain

Asset management powerhouse Franklin Templeton has introduced its Franklin OnChain US Government Money Fund (FOBXX) on the Aptos Layer-1 blockchain.

This partnership highlights the increasing interest from institutions in blending traditional finance (TradFi) with decentralized finance (DeFi).

Franklin Templeton Debuts FOBXX on Aptos

This on-chain US Government Money Fund, known as FOBXX and represented by the BENJI token, is now operational on Aptos. As a result, institutional investors can seamlessly access this asset through their digital wallets via Franklin Templeton’s blockchain-based Benji Investments platform and the BENJI token.

The token garnered significant enthusiasm at its launch, amassing over $20 million in subscriptions immediately. This surge in interest stems from its focus on investing in low-risk US government securities, featuring fixed, floating, and variable rates; it also engages in repurchase agreements that are fully collateralized by US government securities or cash.

Importantly, Franklin Templeton’s FOBXX on Aptos is exclusively available to qualified investors who utilize wallets on the Aptos network, subject to request.

 “We must bridge the gap between the TradFi and DeFi sectors, as well as between EVM and non-EVM networks. Integrating the Benji Investments platform with the Aptos Network marks a significant advancement in this direction, and we eagerly anticipate their arrival in the Aptos ecosystem,” remarked Bashar Lazaar, Head of Grants and Ecosystem at the Aptos Foundation.

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This initiative reinforces Franklin Templeton’s dedication to harnessing blockchain technology for enhanced asset management capabilities. Evidence of this commitment is clear, as FOBXX is currently operational on four additional blockchains: Stellar, Polygon, Arbitrum, and Avalanche.

The decision to choose Aptos comes as the global asset management leader aims to leverage the unique features of this Layer-1 blockchain, which are believed to meet the suitability criteria for the Benji platform. Data from DefiLlama supports this notion, revealing a rise in interest for the network.

With a total value locked (TVL) of $553.92 million, the Aptos network has witnessed a more than twofold increase in assets deposited by liquidity providers since July 2024. Furthermore, the number of monthly active addresses on the Aptos network has surged this year, reaching 7.5 million as of September.

This recent development expands Franklin Templeton’s influence in the tokenized securities domain, especially since FOBXX was the first US-registered fund to venture into the public blockchain landscape back in 2021. From the start, the fund’s objective has been to facilitate transactions and maintain records of share ownership.

Other notable entities in this sector include BlackRock (BUIDL) and Ondo Finance (USDY). Their combined efforts have propelled the market to a valuation of $2.058 billion, as reported by Dune.

As illustrated below, BlackRock’s BUIDL leads the industry, commanding 25.2% of the market share, having outpaced Franklin Templeton’s fund in April.

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These findings illustrate how traditional finance is increasingly showing interest in the DeFi arena. Recently, Grayscale unveiled its AVAX trust, adding to its cryptocurrency investment portfolio with a focus on Avalanche. Simultaneously, Goldman Sachs reportedly plans to initiate three tokenization projects this year.