Avalanche Becomes Latest Blockchain to Support Franklin Templeton's Tokenized Money Market Fund

The fund, which launched in 2021, currently stands at a $420 million market cap.

Franklin Templeton’s tokenized money market fund is now available on the Avalanche blockchain.

The fund, officially known as the OnChain U.S. Government Money Market Fund (FOBXX), launched in 2021 and is designed to be accessible via decentralized finance (DeFi) protocols. Its record of ownership is maintained on the Stellar blockchain.

According to Franklin’s head of digital assets, Roger Bayston, expanding the fund's presence on Avalanche is part of an effort to provide "high quality attributes and characteristics" to its customers, given the network's "super robust" nature.

“I think the broader vision for us is really continuing to expand the use cases for tokenized assets, and we view this as a critical step in that journey,” Bayston added.

Avalanche joins Polygon and Arbitrum in hosting the fund, which is used by several DeFi protocols for on-chain settlements and to credit user accounts with interest payments.

“For us, why we’re very excited to have Franklin Templeton’s Benji app and platform deployed on Avalanche is really twofold,” said Morgan Krupetsky, Ava Labs’ head of capital markets and institutions.

“On the one hand, the money market funds contract in and of itself and potentially as a payment mechanism represents a foundational and fundamental piece to a broader tokenized asset ecosystem and capabilities,” Krupetsky added.

“But two, being able to work with the team to deliver and bring to bear real world utilities and use cases for users today that are potentially off chain that now have these new suite capabilities and access points that they don’t have today or are more cumbersome today.”

FOBXX debuted in 2021 as the first money market fund to use a public blockchain to record transactions and ownership. Three years on, the fund has a market cap of $420 million.

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