Franklin Templeton Launches Its First On-Chain Money Market Fund on the Aptos Blockchain

Asset manager Franklin Templeton's On-Chain U.S. Government Money Fund (Nasdaq: FOBXX) has become the first money market fund on the Aptos blockchain

Asset manager Franklin Templeton (NYSE:FTI) has launched its錢On-Chain U.S. Government Money Fund (Nasdaq:FOBXX) on the Aptos blockchain, becoming the first money market fund on the Layer 1 blockchain, Aptos announced Wednesday.

“Special Edition Aptos Newsroom ⚡

Hot off the press! @FTI_DA has officially launched its Franklin OnChain U.S. Government Money Fund (FOBXX) represented by the BENJI token on Aptos!

FOBXX has surged past $20M in subscriptions to date. This marks a major step in TradFi's institutional blockchain adoption journey.

Learn More: https://t.co/L7CgthT6a0

#AptosEcosystem #TradFi #MoneyMarketFund pic.twitter.com/pgLHfjZN4V

,” Aptos said on Twitter.

The fund, which has a market cap of $435 million, is now the second-largest tokenized fund available. It is already available on the Ethereum network through Arbitrum, as well as on Stellar, Polygon, and Avalanche.

The fund is a new innovation in the money market fund space, aiming to use blockchain technology to enhance transparency and efficiency in managing cash equivalents. Investors can access and manage their FOBXX investments directly from Franklin Templeton's Benji digital wallet.

While the firm's venture into on-chain money market funds is certainly a progressive step, launching it on a relatively new and untested blockchain like Aptos, which was launched in 2022, raises valid concerns regarding the platform's maturity, market trust, the intricacies of decentralization, user experience, potential liquidity risks, and interoperability issues.

However, Franklin Templeton said the move is a “massive step in the right direction to innovate in the name of a truly decentralized and accessible financial future” and that Aptos met its “rigorous suitability standards for the Benji platform.”

Aptos' (CRYPTO: APT) token is rallying on the news, up 8% to $8.20 overnight, according to Coinmarketcap data.

SEC Reviewing Crypto Index ETF Proposal As Franklin Templeton ventures into new territory, the U.S. Securities and Exchange Commission is considering the asset manager's proposal to launch a Crypto Index ETF, aiming to provide investors with exposure to the two largest cryptocurrencies via a single index fund.

The ETF will be managed by BNY Mellon (NYSE:BK), serving as both custodian and transfer agent, while Coinbase Custody will handle the management of the fund's digital assets.

The Franklin Crypto Index ETF will be the first-of-its-kind ETF to hold both Bitcoin and Ether, marking a significant development in the digital currency ETF landscape. Shares will be issued in blocks of 50,000, with their value reflecting the net asset value (NAV) of the Bitcoin and Ether held by the fund. Notably, the fund will not engage in activities like staking or generating income from its digital assets, focusing instead on the direct performance of the underlying cryptocurrencies.

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