Franklin Templeton launches tokenized money fund on Base
Franklin Templeton has launched the first tokenized money fund on Coinbase's layer-2 network, Base. The Franklin OnChain US Government Money Fund (FOBXX) was introduced on October 31, 2024, and has previously operated on Stellar, Polygon, and Arbitrum. With net assets of approximately $435 million and annualized returns of 4.7%, FOBXX aims to enhance the accessibility of tokenized real-world assets (RWAs). The fund primarily invests in liquid assets like Treasury bills and commercial paper, providing low-risk yields for investors. Franklin Templeton stands out in the tokenized fund sector for utilizing public distributed ledger technologies for transaction record-keeping. The launch on Base reflects U.S. regulatory approval of its public ledger for financial records. Base, since its launch in 2023, has gained traction as Ethereum’s second leading layer-2 solution, boasting a total value locked of around $8 billion. Tokenized RWAs represent a significant market opportunity globally, estimated at $30 trillion, with growing demand for products that tokenize yield-bearing assets.
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