Franklin Templeton Launches FOBXX US Government Money Fund on Aptos Blockchain

The collaboration signifies growing institutional interest in further integrating traditional finance (TradFi) into decentralized finance (DeFi).

Asset management giant Franklin Templeton has launched its on-chain US Government Money Fund FOBXX on Layer-1 blockchain Aptos.

The move comes as part of a broader trend of TradFi institutions entering the DeFi space.

Franklin Templeton Launches FOBXX on Aptos

The American multinational holding company’s on-chain US Government Money Fund FOBXX, represented by the BENJI token, is now live on Aptos. This will allow institutional investors to hold the asset in their digital wallets via Franklin Templeton’s blockchain-integrated Benji Investments platform and BENJI token.

The token saw strong demand at launch, with more than $20 million in subscriptions recorded upon debut. The fund invests in low-risk US government securities with fixed, floating, and variable rates, as well as repurchase agreements that are fully collateralized by US government securities or cash.

It is important to note that Franklin Templeton’s FOBXX on Aptos is only available to eligible investors who can hold their wallets on the Aptos network, subject to request.

“We need to connect not just the TradFi and DeFi worlds, but EVM and non-EVM networks as well. Integrating the Benji Investments platform with the Aptos Network is a massive step in the right direction and we look forward to welcoming them to the Aptos ecosystem,” said Aptos Foundation Head of Grants and Ecosystem Bashar Lazaar.

The decision also furthers Franklin Templeton’s aim to unlock new asset management capabilities with blockchain technology. This is evident as the FOBXX is already live on four other blockchains – Stellar, Polygon, Arbitrum, and Avalanche.

The latest choice follows as the global asset management giant eyes the Layer-1 blockchain’s unique characteristics that are said to align with its suitability standards for the Benji platform. Data from DefiLlama seems to support this as the network has seen increased attention.

With a total value locked (TVL) of $553.92 million, the Aptos network has more than doubled the assets deposited by liquidity providers since July 2024. Furthermore, the number of monthly active addresses on the Aptos network has also seen significant growth this year, reaching 7.5 million as of September.

The recent development adds to Franklin Templeton’s footprints in the tokenized securities space, given that FOBXX spearheaded US-registered funds’ venture into public blockchain in 2021. From the get-go, the fund was designed to handle transactions and record share ownership.

Other players in the scene include BlackRock (BUIDL), and Ondo Finance (USDY). Their individual and combined efforts have brought the sector to a $2.058 billion market, according to Dune data.

As seen below, BlackRock’s BUIDL leads the pack with a 25.2% market share. Notably, it overtook Franklin Templeton’s fund in April.

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