Franklin Templeton Expands OnChain Fund to Layer-2 Base

Franklin Templeton announced on Thursday the expansion of its $410 million OnChain U.S. Government Money Market Fund to Coinbase’s layer-2 Base network, making it the first asset manager to launch on the blockchain platform this October.

New chain unlocked. Benji, our proprietary blockchain-integrated recordkeeping system, is now live on @base! With this announcement, Franklin Templeton is the first asset manager to build a tokenized fund on Base.

Base is a layer 2 blockchain built on Ethereum designed to… pic.twitter.com/lRij7HchSl

— Franklin Templeton Digital Assets (@FTDA_US) October 31, 2024

This development positions Franklin Templeton as a pioneer in integrating layer-2 blockchain technology for a traditional financial asset.

Expanding Access to On-Chain Assets

With the addition of Coinbase’s Base, Franklin Templeton’s OnChain U.S. Government Money Market Fund is now accessible on six blockchains, including Stellar and Arbitrum.

Designed to integrate with blockchain-based financial systems, the fund provides a decentralized option for trading and managing government-backed assets.

Since its launch in 2021, the fund has grown to a $410 million market capitalization, placing it among the world’s largest tokenized funds.

Anthony Bassili, Coinbase’s head of tokenization, remarked that Franklin Templeton’s move to Base underscores the growing interest of traditional financial institutions in on-chain assets.

“This is the first large asset manager to directly launch on Base, a clear signal to investors and issuers of what’s to come,” said Bassili. “Financial institutions like Franklin Templeton are increasingly taking advantage of fast, low-cost onchain technology to modernize the financial system.”

Expanding onto Aptos and Beyond

Earlier in October, Franklin Templeton launched the government money fund on layer-1 blockchain Aptos.

🌐 Franklin Templeton’s @FTI_US blockchain-powered US Government Money Fund just went live on the Aptos Network @AptosLabs. #franklintempleton #blockchain https://t.co/1ylOeRlkgM

— Cryptonews.com (@cryptonews) October 2, 2024

“We chose the Aptos Network given its unique characteristics which meet our rigorous suitability standards for the Benji platform,” said Franklin Templeton’s Digital Assets Head Roger Bayston.

The firm’s strategies include a mix of direct investments in cryptocurrencies like Bitcoin via ETFs and funds that tokenize traditional assets, such as government securities.

Bayston described the move as an essential step in the company’s efforts to leverage blockchain technology to enhance asset management capabilities.