In a notable move that underscores the increasing interest in blockchain technology, Franklin Templeton has made the OnChain U.S. Government Money Market Fund (FOBXX) available on Solana. This fund is now recognized as the third-largest tokenized money market fund in existence, further enhancing Franklin Templeton’s position in the evolving financial landscape.
The OnChain U.S. Government Money Market Fund, which initially launched on Ethereum, has expanded its availability to multiple blockchains including Coinbase’s Base, Aptos, and Avalanche throughout last year. The primary blockchain for its operations remains the Stellar network. The asset manager publicly announced this expansion on Wednesday, signaling a commitment to embracing blockchain technologies.
Solana has recently emerged as a vital hub for new cryptocurrency tokens, particularly memecoins, and decentralized trading. A report by Pantera Capital indicates that Solana now represents over 90% of all new tokens introduced on decentralized exchanges (DEX), indicating a substantial increase from a mere 1% in late 2023.
According to analysts Cosmo Jiang and Eric Wallach, “Even when innovation doesn’t start on Solana, it eventually finds its way there,” highlighting the platform’s capacity for attracting innovation and investment.
FOBXX, which began operations in 2021, has grown impressively, boasting a market capitalization of $594 million as of the latest data from rwa.xyz. Although it currently trails behind Hashnote’s Short Duration Yield Coin (USYC) and BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), its growth trajectory is noteworthy.
The concept of tokenization is rapidly becoming one of the most prominent sectors within the crypto marketplace. As institutional players increasingly strive to integrate traditional financial assets—such as bonds, commodities, and funds—into the blockchain ecosystem, the industry is poised for significant growth. Reports from influential firms like BCG and McKinsey have indicated that this represents a multitrillion-dollar market opportunity.
Solana Gains Momentum
In the ongoing exploration of tokenization, the smart-contract network Ethereum currently leads, holding a 52% market share with tokenized real-world assets valued at $3.8 billion. Following closely behind is Ethereum layer-2 ZKsync Era, while Solana occupies the seventh position, valued at $135 million according to data from rwa.xyz.
Franklin Templeton’s strategic move to expand on Solana aligns with the growing trend of asset manager participation in blockchain tokenization. The platform Securitize, also recognized for its real-world asset offerings, extended its services—including BUIDL— to the Solana network earlier this year.
In a recent interview, Anthony Scaramucci, founder and managing partner of hedge fund SkyBridge, praised Solana’s superior speed and efficiency. He confidently stated that it is likely to “win the race” in the tokenization realm, reinforcing the growing momentum behind this blockchain.
