Franklin Templeton Launches Tokenized Money Market Fund on Aptos Blockchain

Global asset manager Franklin Templeton announced Wednesday that its blockchain-based government money fund is now live on Layer-1 blockchain Aptos.

The Franklin OnChain US Government Money Fund (FOBXX) is the first US-registered fund to use a public blockchain for transaction processing and recording share ownership.

Institutional investors can access the fund through digital wallets on the Benji Investments platform. This platform is Franklin Templeton’s blockchain-integrated record-keeping system. Investors can also choose to hold their wallets on the Aptos network, according to the fund manager.

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

He added that the announcement marks a significant milestone in the firm’s journey to “unlock new asset management capabilities through blockchain technology.”

Franklin Templeton Explores Blockchain-Driven Fund Management

Since 2018, Franklin Templeton Digital Assets has been developing blockchain-based solutions. The firm has also been managing node validators and creating diverse investment strategies. It has explored how blockchain can transform fund management. This is evident with its on-chain US Government Money Fund, which uses public blockchains like Stellar, Polygon and Arbitrum for transactions and share ownership recording.

The firm’s investment strategies vary. These include direct investments in cryptocurrencies like Bitcoin through ETFs and funds that tokenize traditional assets like government securities. These approaches cater to a wide range of investors. Some seek high returns in volatile digital currencies, while others prefer the stability of blockchain-enhanced government securities.

Also, its partnership with companies like SBI Holdings, alongside its integration across various blockchain networks and the introduction of ETFs, shows a strategic expansion into the digital asset market.