Franklin Templeton Expands Its Tokenized U.S. Treasuries Fund (FOBXX) to Avalanche

Franklin Templeton, one of the world's largest investment managers with more than $1.4 trillion in assets under management, continues to expand its tokenized U.S. treasuries fund onto new chains.

Franklin Templeton, an investment management firm with over $1.4 trillion in assets under management, has announced the launch of its Franklin OnChain U.S. Government Money Fund (FOBXX) on the Avalanche network.

The fund, which is already available on Stellar, Polygon, and Arbitrum, offers investors dividends from yields generated by U.S. treasury assets while maintaining a stable share price of $1 each. Shares in the fund can be purchased through Franklin Templeton's Benji Investments platform, with one BENJI token representing $1 worth of shares in FOBXX.

According to Franklin Templeton, the integration with Avalanche will expand access to its tokenized money market fund, which is the only U.S.-registered mutual fund to use public blockchains as its “system of record to process transactions and record share ownership.”

"Bringing the Benji platform to the Avalanche network further expands access to our first-of-its-kind tokenized money market fund, while also presenting a unique opportunity to onboard new users to the network," said Roger Bayston, Head of Digital Assets at Franklin Templeton.

"Franklin Templeton shares a mutual commitment to developing transformative digital financial products and services that will meet on-chain investor demand today and bring off-chain capital and users into the ecosystem,” said John Wu, the President of Ava Labs, the development team behind Avalanche.

FOBXX was initially launched on the Stellar network in 2021, and its multi-chain expansion began in April 2023 with the integration with Polygon. The fund also launched on Arbitrum in August 2023.

The launch of FOBXX on Avalanche comes amid increasing competition in the tokenized treasuries fund space. In March 2023, BlackRock, the world's largest asset manager, launched its own Ethereum-based tokenized treasuries fund called the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).

Within six weeks of its launch, BUIDL surpassed FOBXX in terms of assets under management, largely due to the strong performance of Ethereum-based DeFi protocols throughout 2023.

As of September 2023, BUIDL had $502.7 million in assets under management, compared to $424.9 million for FOBXX, according to Rwa.xyz. However, FOBXX has grown 30.5% since the beginning of the year.

The growth of BUIDL and FOBXX has contributed to the tokenized treasuries sector reaching a market capitalization of $1.92 billion, up 150% since the start of 2024.

While Avalanche's total value locked (TVL) has doubled since bear market lows in Q3 2023, it has remained largely unchanged throughout 2024, currently sitting at $1.12 billion, down 7.44% year-to-date.

The price of Avalanche's native AVAX token has increased by 1.5% over the last 24 hours, according to The Defiant's crypto price feeds.

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