The transfer comes two weeks after the fund expanded onto Arbitrum.
Franklin Templeton, one of many world’s largest funding managers with greater than $1.4 trillion in belongings underneath administration, continues to develop its tokenized U.S. treasuries fund onto new chains.
On Aug. 22, Franklin Templeton launched the Franklin OnChain U.S. Authorities Cash Fund (FOBXX) onto Avalanche, a Layer 1 community rating because the seventh largest chain by complete worth locked (TVL) in DeFi protocols.
The fund pays buyers dividends from yields derived from U.S. treasury belongings whereas sustaining a steady share value of $1 every. Shares within the fund are bought through Franklin Templeton’s Benji Investments platform, with one BENJI token representing $1 value of shares in FOBXX. Retail merchants can use the Benji cell app, whereas the Benji Institutional internet portal serves accredited buyers.
“Bringing the Benji platform to the Avalanche community additional expands entry to our first-of-its-kind tokenized cash market fund,” stated Roger Bayston, head of digital belongings at Franklin Templeton.
“Franklin Templeton shares a mutual dedication to creating transformative digital monetary services and products that can meet on-chain investor demand at this time and convey off-chain capital and customers into the ecosystem,” stated John Wu, the president of Ava Labs, the event crew behind Avalanche.
FOBXX launched on Stellar in 2021, and claims to comprise the one U.S.-registered mutual fund leveraging public blockchains as its “system of document to course of transactions and document share possession.”
FOBXX expanded onto the Polygon POS Ethereum sidechain in April 2023. On Aug. 8, the fund additionally launched on Arbitrum, the highest Layer 2 by TVL. Customers buying shares through Benji choose which community their shares are transferred to.
Franklin Templeton first entered the web3 sector with the launch of its Digital Belongings division in 2018.
FOBXX versus BUIDL
Franklin Templeton is betting that the multi-chain growth will permit FOBXX to stay aggressive with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) — the Ethereum-based tokenized treasuries fund from the world’s largest asset supervisor, BlackRock.
BUIDL went reside on March 20 and overtook FOBXX by belongings underneath administration roughly six weeks later. BUIDL now boasts belongings underneath administration of $502.7 million, beating out FOBXX with $424.9 million — regardless of the fund rising 30.5% because the yr started, based on Rwa.xyz.
The expansion of BUIDL and FOBXX has propelled the tokenized treasuries sector to a market cap of $1.92 billion, up 150% because the begin of 2024.
Whereas Avalanche’s TVL has doubled because the bear development bottomed out throughout Q3 2023, the community’s TVL has oscillated sideways all through 2024, at the moment sitting at $1.12 billion for a 7.44% year-to-date drawdown.
The worth of Avalanche’s AVAX token is up 1.5% over the previous 24 hours, based on The Defiant’s crypto value feeds.
Learn Extra: Blackrock’s Tokenized Treasuries Fund BUIDL Tops $500M
