Franklin Templeton expands its money market fund to the Ethereum blockchain
In a notable expansion of blockchain use in asset management, Franklin Templeton has brought its $410 million OnChain U.S. Government Money Market Fund (FOBXX) to the Ethereum blockchain. The fund, which launched in 2021 as the first to use public blockchain for transaction tracking and ownership verification, is now positioned as the third largest tokenized money market fund.
Franklin Templeton adopts multi-chain strategy
The move to Ethereum adds another blockchain network within the reach of the fund. Originally operating on Stellar, Franklin Templeton has recently expanded to other blockchain networks, including Base, Aptos, and Coinbase’s Avalanche. The company’s diversification aligns with an industry trend toward the adoption of multiple channels for security, accessibility and broader market participation.
“We aim to provide more options for investors and strengthen the fund’s reach in the tokenized asset space,” a Franklin Templeton spokesperson said, highlighting the company’s commitment to expanding asset support digital.
Ethereum dominates the tokenized Treasury market
Ethereum continues to dominate the tokenized treasury market with $1.6 billion in assets under management (AUM), representing approximately 71% of the market. Stellar, which remains Franklin Templeton’s main blockchain, holds around 17%, while Solana follows with 5.8%. Smaller portions are spread across various other networks, such as Arbitrum, Optimism, and Sui, highlighting Ethereum’s central role in the evolving blockchain-based asset ecosystem.
This market dominance reflects Ethereum’s appeal to asset managers like Franklin Templeton, with high liquidity and a well-established infrastructure for tokenized assets.
Industry-Wide Blockchain Expansion
Franklin Templeton’s expansion aligns with broader industry trends as other leading asset managers integrate blockchain. BlackRock, for example, recently expanded its Institutional USD Digital Liquidity Fund (BUIDL) to Aptos, Arbitrum, Avalanche, and Polygon, increasing access to its $545 million tokenized asset. As more companies adopt multi-chain strategies, experts predict better options for investors and greater scalability within blockchain-based finance.
Franklin Templeton’s integration of Ethereum further highlights the central role of blockchain in asset tokenization and paves the way for future developments in digital asset management.
