NEW YORK, Monday, August12, 2024 – Investment giant Franklin Templeton launched its blockchain-based money market fund on the Arbitrum network, catering to the growing demand for tokenized real-world asset funds. Arbitrum is a popular scaling solution for the Ethereum blockchain.
The firm’s Nasdaq-listed OnChain U.S. Government Money Fund (FOBXX) became accessible on digital wallets on the Arbitrum network on Thursday, August 8.1
This launch broadens access to the fund for individual investors, with a focus on secure and active blockchain networks.
FOBXX invests “at least 99.5% of its total assets in U.S. government securities, cash, and repurchase agreements fully collateralized by the U.S. government,” as per its issuer’s website. It targets institutional and individual investors seeking relatively high returns through investments in government securities and related instruments.
The fund managed approximately $420 million in assets as of July 31, making it the second-largest offering in the market.
The launch of FOBXX on Arbitrum comes amid a surge in demand for tokenized Real-World Asset (RWA) funds. BlackRock’s BUIDL fund, the largest in this category, has distributed $7 million in dividends since its March launch.
According to a Dune dashboard by crypto firm 21 Shares, the tokenized treasury market more than doubled to $1.8 billion from January to June 2024.
Arbitrum is a layer-2 solution built on top of the Ethereum blockchain. It’s designed to address Ethereum’s scalability challenges by processing transactions off-chain, significantly increasing speed and reducing costs.
It is a faster, more efficient highway built alongside the main Ethereum road.
This allows for quicker and cheaper transactions while maintaining the security benefits of the Ethereum network.
