Franklin Templeton Expands its Money Market Fund to Ethereum

Franklin Templeton has expanded the trading of its OnChain US Government Money Market Fund (FOBXX) to include Ethereum.

This year, the asset manager has added multiple new blockchains to support the fund, including Base, Aptos, and Avalanche from Coinbase. The fund currently primarily uses the Stellar network as its public blockchain.

Launched in 2021, FOBXX became the first money market fund to utilize a public blockchain for tracking transactions and ownership. With a market cap of $410 million, it is the third-largest tokenized money market fund.

However, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) quickly surpassed it and now holds the top spot with a market cap of $545 million. In second place is Ondo’s US Dollar Yield (USDY) fund, with a market cap of $452 million.

Ethereum is the preferred choice among issuers for tokenizing treasuries, with over $1.6 billion in assets using the blockchain.