Franklin Templeton’s $594M Tokenized Treasury Fund Launches on Solana

Asset management firm Franklin Templeton has expanded its OnChain U.S. Government Money Market Fund (FOBXX), now the third-largest tokenized money market fund, to the Solana blockchain, signaling a growing interest in blockchain adoption.

The asset manager noted that the fund is already accessible on Ethereum, Base, Aptos, and Avalanche, all of which were added last year. The Stellar network serves as the primary blockchain.

Why Solana Blockchain?

According to a Pantera Capital report, Solana, a leading platform for new tokens and decentralized trading, now accounts for over 90% of all new tokens appearing on decentralized exchanges (DEX), a significant jump from 1% in late 2023. Solana’s growing dominance in the tokenization space follows Ethereum’s lead, which remains the top blockchain for tokenization with a 52% market share, representing $3.8 billion in tokenized real-world assets.

The strategic decision to adopt the Solana blockchain shows that the crypto world is not just a niche industry for retail investors but is also growing into a major player in institutional finance. This could pave the way for other large asset managers, banks, and investment firms to consider integrating blockchain technology into their offerings.

For Franklin Templeton, Solana provides key advantages that could enhance the efficiency of the money market fund. With its high throughput, Solana enables the fund to process transactions at exceptional speeds, ensuring optimal liquidity. Additionally, the blockchain’s low transaction fees make it an appealing choice for institutional investors focused on cost-effectiveness.

FOBXX, launched in 2021, has reached a market capitalization of $594 million, according to data from rwa.xyz, trailing behind Hashnote’s Short Duration Yield Coin (USYC) and BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

Solana Offers Speed & Efficiency

The management giant’s move to Solana highlights the network’s increasing importance for tokenization efforts, following similar expansions by platforms like Securitize. Meanwhile, Anthony Scaramucci, founder of SkyBridge Capital, has praised Solana for its speed and efficiency and predicted it will succeed in tokenization.

Interestingly, tokenization continues to gain momentum as one of the fastest-growing sectors in crypto. Institutions are bringing traditional financial assets—such as bonds, commodities, and funds—into the blockchain space for more efficient operations and quicker settlements. Industry reports from BCG, McKinsey, and Brevan Howard predict a multi-trillion-dollar market opportunity.