Franklin Templeton has launched its OnChain U.S. Government Money Fund (FOBXX) on the Aptos blockchain. This marks the firm’s expansion into its fifth blockchain network, carried out in collaboration with the Aptos Foundation.
⚡ Aptos Newsroom, Special Edition ⚡@FTI_DA has launched its Franklin OnChain U.S. Government Money Fund (FOBXX) represented by the BENJI token on Aptos! 🤝
— Aptos (@Aptos) October 2, 2024
FOBXX has surged past $20M in subscriptions, signaling a major breakthrough in institutional blockchain adoption. https://t.co/L7CgthT6a0 pic.twitter.com/pgLHfjZN4V
This development allows institutional investors to access FOBXX through Franklin Templeton’s Benji Investments platform. Investors can also manage their wallets on the Aptos network if requested. This integration increases flexibility and control over assets.
Improving Blockchain Interoperability
The integration of FOBXX on Aptos aims to improve the interoperability of real-world assets across both EVM and non-EVM blockchain environments. This move is part of a larger strategy to connect traditional finance (TradFi) and decentralized finance (DeFi).
The collaboration enhances the movement of treasury-backed assets across different blockchain platforms. Aptos Foundation’s leadership sees this initiative as a way to attract more users to their blockchain ecosystem.
Early Success on Aptos
FOBXX has already enjoyed a good uptake on the Aptos network. Since its inception, it has received over $20 million in subscriptions. This shows the increasing demand for blockchain-integrated financial products.
FOBXX was initially created on the Stellar network and later onboarded to Polygon and other networks, such as Arbitrum and Avalanche. These expansions are laid down to make the fund more accessible in different environments of blockchain facilities. In particular, the fund is focused on institutional clients in search of risk-free US government bonds.
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Franklin Templeton chose the Aptos network because of its specific features, which make it a strong choice for expanding blockchain-integrated asset management products. These features, such as Consumer Confidence Safeguards and Modular Architecture, meet the firm’s standards for the Benji platform. Thus making it a suitable platform for this expansion.
FOBXX invests in U.S. government securities, such as fixed and floating-rate instruments. It also includes repurchase agreements backed by government assets or cash. Franklin Templeton continues to explore how blockchain technology can create new opportunities in asset management.
