Franklin Templeton Launches Tokenized U.S. Government Money Market Fund on Coinbase’s Base Blockchain
Franklin Templeton, a prominent asset management firm, has introduced its OnChain U.S. Government Money Market Fund on Coinbase’s layer-2 blockchain, Base.
This marks a significant milestone as it is the first time an established asset manager has made a fund available on the Base network, which aims to enhance transaction efficiency and reduce costs on the Ethereum blockchain.
The tokenized fund, known as FOBXX, is now accessible on Coinbase’s Base, highlighting the growing influence of this layer-2 solution in the decentralized finance (DeFi) sector. Anthony Bassili, head of tokenization at Coinbase, noted that Franklin Templeton’s launch signals to investors and issuers the potential of Base, emphasizing the increasing trend of financial institutions leveraging blockchain for quicker and more cost-effective transactions.
With the addition of FOBXX, Franklin Templeton expands its blockchain presence to six networks, including Stellar, Arbitrum, Polygon, Avalanche, and Aptos, while Stellar remains the primary network for the fund. FOBXX, which boasts a market capitalization of $410 million, is considered the largest tokenized fund in the market and represents Franklin Templeton’s broader strategy to integrate blockchain technology into traditional finance.
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Launched in 2021, FOBXX is notable for being the first money market fund to utilize public blockchain for transaction and ownership data recording, allowing investors to access a U.S. government-backed money market product with enhanced transparency.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
