Franklin Templeton, a major player in global asset management, has further expanded its blockchain initiatives by integrating its OnChain U.S. Government Money Fund (FOBXX) with the Avalanche blockchain. This move marks the latest step in Franklin Templeton’s strategy to broaden the accessibility and functionality of its tokenized financial products. Originally launched on the Stellar blockchain in 2021, the FOBXX fund has since grown to manage $402 million in assets and is now available on several other blockchains, including Polygon, Arbitrum, and now Avalanche.
The decision to integrate with Avalanche underscores the growing institutional interest in blockchain technology for traditional financial services. The Avalanche network, known for its rapid transaction finality and low fees, has become increasingly attractive to financial institutions aiming to innovate in the digital asset space. Franklin Templeton’s Head of Digital Assets, Roger Bayston, highlighted the importance of this expansion, stating, “Bringing the Benji platform to the Avalanche network further expands access to our first-of-its-kind tokenized money market fund.”
Franklin Templeton’s tokenized money market fund allows both institutional and retail investors to hold shares in the form of tokens, which can be traded peer-to-peer with minimal restrictions. The FOBXX fund primarily invests in low-risk U.S. government securities, including fixed and variable rate securities, as well as repurchase agreements collateralized by U.S. government securities or cash. The integration with Avalanche is expected to enhance the fund’s accessibility and functionality, particularly for larger institutional investors.
The addition of Avalanche to Franklin Templeton’s blockchain portfolio reflects a broader trend of integrating traditional finance (TradFi) with decentralized finance (DeFi). This expansion is part of a wider push by institutions to explore the potential of blockchain technology in enhancing financial services.
In parallel, Grayscale Investments, a prominent cryptocurrency asset manager, has launched a new investment trust focused on the Avalanche blockchain. The Grayscale Avalanche Trust offers investors exposure to the AVAX token, which is used to pay transaction fees and secure the network. The trust joins Grayscale’s extensive portfolio of crypto investment products, which includes trusts for major digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), as well as newer tokens such as Bittensor (TAO) and Sui (SUI).
The launch of the Avalanche Trust aligns with Grayscale’s broader strategy to provide diversified digital asset investment options to institutional and retail investors. According to Grayscale’s head of product and research, Rayhaneh Sharif-Askary, “Avalanche’s groundbreaking efforts to simplify the process of digitizing real-world assets help make blockchain technology more accessible to enterprises and governments, leading to wider adoption and interest.”
Both Franklin Templeton and Grayscale’s recent moves highlight the increasing momentum behind the tokenization of real-world assets (RWAs). With these developments, both companies are playing significant roles in advancing the integration of blockchain technology into the broader financial ecosystem. As the regulatory landscape continues to evolve, these initiatives are likely to shape the future of finance, bridging the gap between traditional and digital assets.
Photo by Pete Alexopoulos on Unsplash
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