Franklin Templeton recently made a groundbreaking announcement on Feb. 12, revealing that their tokenized money fund, the “Franklin OnChain US Government Money Fund” (FOBXX), has been successfully deployed on the Solana blockchain. This move marks a significant milestone for the fund as it is now available on a total of eight different blockchains.
The FOBXX is a unique fund that invests 99.5% of its total assets in US government securities, cash, and repurchase agreements fully collateralized by US government securities or cash. Offering an impressive annual percentage yield (APY) of 4.55%, the FOBXX provides investors with a stable and secure investment option.
In the world of blockchain and finance, a tokenized money fund is a real-world fund whose shares are issued digitally on a blockchain, allowing for seamless trading on a secondary market with no downtime. The FOBXX has quickly gained traction in the market, boasting a market cap of nearly $594 million as of Feb. 11, making it the third-largest money fund with tokenized shares. With 544 holders and a 2.5% increase in holders over the past 30 days, the FOBXX continues to attract interest from investors.
Interestingly, the smallest amount of FOBXX is currently available on Aptos, totaling $21.4 million. The integration of FOBXX on the Solana blockchain is expected to provide a significant boost to the network’s tokenized money fund ecosystem. As of Feb. 11, nearly $136 million in tokenized shares had been issued on Solana, accounting for less than 4% of the sector’s market cap.
The tokenized money fund sector has experienced remarkable growth, with a 415% increase in 2024, culminating in a market cap of nearly $4 billion by the end of the year. Although the market cap dipped to $3.6 billion as of Feb. 11, it remains over four times larger than the market cap recorded on the same date last year.
Ethereum currently leads the market, hosting over $2.4 billion in tokenized shares, followed by Stellar with nearly $380 million in digital money fund share versions, largely due to the $372 million of FOBXX issued on the network. Apart from Ethereum and Stellar, none of the other 13 blockchains tracked by rwa.xyz have surpassed the $150 million threshold in tokenized money fund shares.
Overall, the integration of the FOBXX on the Solana blockchain is a significant development for the tokenized money fund sector, providing investors with more opportunities to diversify their portfolios and access innovative investment options in the ever-evolving world of blockchain finance.