Franklin Templeton, a financial firm managing $1.6 trillion in assets, has taken a significant step in expanding its blockchain presence by integrating with the Solana ecosystem. On February 12, 2025, the company introduced its OnChain US Government Money Fund (FOBXX) on Solana’s layer-1 blockchain. This move reflects the firm’s continued support for blockchain technology and its increasing role in traditional finance, following the initial launch of FOBXX in 2021.
The fund is recognized for its stability and security, as it allocates nearly all of its assets to U.S. government securities, cash, and fully collateralized repurchase agreements. As of January 31, 2025, FOBXX had accumulated $512 million in assets, delivering a 7-day effective yield of 4.2%. With investors continuously searching for reliable and yield-generating opportunities, this development enables broader accessibility to such investments through blockchain technology.
A representative from Franklin Templeton emphasized that this initiative further expands the company’s presence across layer-1 blockchain networks. The firm acknowledged Solana’s growing appeal among institutional investors, positioning itself beyond its earlier reputation as a platform primarily associated with speculative assets.
Expanding Tokenization and Blockchain Integration
FOBXX operates across multiple blockchains, including Ethereum, Avalanche, Arbitrum, Base, Polygon, and Aptos, allowing seamless transactions between these networks. Franklin Templeton has expressed confidence in tokenizing real-world assets across various platforms as a strategic approach to investment diversification. The company underscored that FOBXX is the first U.S.-based fund to utilize distributed ledger technology (DLT) for efficient tracking of BENJI tokens, each representing a share of the fund. By leveraging blockchain technology, the company aims to address inefficiencies within traditional mutual fund management, which often involves extensive paperwork and lengthy processing times.
Alongside the Solana-based expansion, Franklin Templeton has actively pursued tokenized asset initiatives, mirroring the approach taken by the Apollo Diversified Credit Securitize Fund. The increasing interest in tokenized real-world assets has been driven by the adoption of stablecoins, U.S. government bonds, private credit solutions, and other institutional investments. Furthermore, decentralized on-chain trading has gained traction among corporate bond, stock, and commodity markets.
Growing Presence in the Crypto Sector
Franklin Templeton’s foray into blockchain extends beyond its Solana initiative. The firm introduced Bitcoin ETFs in January 2024, followed by Ethereum ETFs in July of the same year. It has also sought regulatory approval from the U.S. Securities and Exchange Commission (SEC) to launch a Crypto Index ETF, reinforcing its long-term commitment to the digital asset sector. Such developments reflect the company’s vision of integrating traditional financial instruments with blockchain-based solutions.
As part of its broader engagement with the Solana network, Franklin Templeton filed a trust registration in Delaware in February 2025, signaling potential plans for a Solana ETF. However, regulatory uncertainty continues to pose challenges, with ongoing legal discussions regarding whether SOL qualifies as an unregistered security. The SEC’s stance on this matter is expected to influence future investment products linked to Solana.
Institutional Interest in Solana and Market Recovery
While Solana initially gained popularity among retail investors and meme-coin enthusiasts, institutional engagement has increased significantly. Decentralized applications (DApps) on the network recorded a 54% rise in investments during the third quarter of 2024, reaching a total of $173 million. Research by CoinShares has also indicated a growing allocation of SOL by hedge funds and wealth managers throughout 2024.
Despite facing setbacks, including a sharp decline in SOL’s value following the FTX collapse, Solana has demonstrated resilience. The token, which once dropped below $10, experienced a notable recovery, surging to $265.10. Market speculation regarding the involvement of a former U.S. president in memecoin transactions contributed to renewed interest in the ecosystem. The network’s progress highlights its technological capabilities and strong community support.
The Rise of Tokenized Treasury Assets
Franklin Templeton has aligned itself with other major firms, including BlackRock, Hashnote, Ondo, and OpenEden, in adopting a multi-chain approach to tokenized treasury assets. BlackRock’s BUIDL initiative allows asset purchases on Aptos, Arbitrum, Avalanche, and Optimism, while Ondo’s USDY operates across Solana, Mantle, Ethereum, and Aptos.
The combined value of tokenized U.S. Treasury assets has surged to $3.6 billion, with Hashnote’s Short Duration Yield Note leading the market at a $1.1 billion capitalization. Other key players include BlackRock’s BUIDL and Franklin Templeton’s FOBXX, with Ondo’s USDY also securing a significant market position.
At present, the total market capitalization of real-world asset (RWA) tokenization has exceeded $17.2 billion. Platforms such as rwa.xyz are actively tracking over 110 asset issuers in the sector, highlighting a transformative shift in asset management and trading. The benefits of tokenization, including enhanced liquidity, transparency, and accessibility, are becoming increasingly evident in global financial markets.
Solana has now become the latest blockchain network to host Franklin Templeton’s tokenized money market fund, joining a roster that includes Aptos, Ethereum, Avalanche, Arbitrum, Base, and Polygon. Initially introduced on the Stellar blockchain, the fund maintains a stable $1 share price, with at least 99.5% of its assets invested in U.S. government securities, cash, and repurchase agreements.
