- Franklin Templeton has introduced the OnChain U.S. Government Money Fund (FOBXX) on the Aptos blockchain.
- Currently, FOBXX boasts a market capitalization exceeding $435 million, ranking second among tokenized US Treasuries, trailing the BlackRock fund BUIDL.
Franklin Templeton has broadened the reach of its OnChain U.S. Government Money Fund (FOBXX) by launching it on the Aptos layer-1 blockchain.
The $1.6 trillion asset management giant, which also manages the Franklin Bitcoin ETF (EZBC) and the Franklin Ethereum ETF (EZET), announced the introduction of FOBXX on Aptos on Wednesday, October 2, 2024. This marks another significant achievement for the firm following the recent expansion of the tokenized money fund to Avalanche.
Established in 2021, FOBXX is a fund backed by U.S. Treasury assets, designed to offer the advantages of tokenized real-world assets to investors.
The fund’s launch on Aptos marks its entry into a non-Ethereum Virtual Machine (EVM) ecosystem and enhances access for institutional investors through Franklin Templeton’s platform Benji Investments.
On the Aptos network, FOBXX will be represented by Franklin’s BENJI token, bridging traditional finance (TradFi) with decentralized finance (DeFi). The company previously introduced its money market fund to the Polygon and Stellar blockchain networks in April 2024.
Subsequently, it expanded to Arbitrum in August 2024.
Expansion of the Tokenized Treasuries Market
Data from RWA.xyz reveals that FOBXX is currently the second-largest tokenized fund, boasting over $435 million in assets.
The leading US Treasury-backed asset is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which was launched on Ethereum and currently manages over $518 million in assets.
Increasingly, investors are exploring opportunities within the real-world asset (RWA) market, leading to the rise in popularity of treasury-related products like the Ondo U.S. Dollar Yield (USDY), Hashnote Short Duration Yield Coin (USYC), and the OpenEden TBILL Vault (TBILL), which have all attracted a growing number of holders.
As of now, USDY, USYC, and TBILL have market caps of $420 million, $280 million, and $116 million, respectively. Ondo launched its USDY fund on the Sui network in March.
Currently, the total value of tokenized US Treasuries, cash equivalents, and bonds, according to RWA.xyz, has surged to over $2.27 billion.
This is a significant increase from approximately $769 million on January 1, 2024, with FOBXX accounting for over $325 million of the total market value at that time.
BlackRock’s BUIDL, which commenced in March 2024, reached a market cap of $500 million in July.
