Franklin Templeton, a leading financial services company, has expanded its OnChain U.S. Government Money Market Fund (FOBXX) to the Solana blockchain.
FOBXX, launched in 2021, has grown to $512 million in market capitalization. It invests nearly 100% of its assets in U.S. government securities, cash, and secured repurchase agreements, ensuring minimal credit risk.
FOBXX is also accessible on multiple blockchains, including layer-1 blockchains Ethereum and Avalanche, Ethereum layer-2 blockchains Arbitrum, Base, Polygon, Aptos, and others. Solana is the latest addition, signaling the blockchain’s increasing importance in tokenization.
As of January 31, 2025, the fund had a seven-day effective yield of 4.2%. Each BENJI token represents one share in the fund, making it the first U.S. mutual fund to use blockchain for record-keeping and transactions.
Solana has emerged as the dominant platform for new token launches, particularly memecoins and decentralized trading. According to Pantera Capital, 90% of all new tokens now appear on Solana-based decentralized exchanges (DEXs), up from just 1% in late 2023.
Despite being known for memecoins, Solana is attracting more institutional investors. Hedge funds and wealth managers are increasing their SOL holdings. After crashing below $10 post-FTX, SOL rebounded to $265.10, partly boosted by Donald Trump’s memecoin launch.
Tokenization is growing fast in crypto, as companies move traditional assets like bonds, commodities, and funds onto blockchain for faster and more efficient transactions. Ethereum is leading with $3.8 billion in tokenized assets, making up 52% of the market. Solana, currently in seventh place with $135 million, is gaining popularity and could rise further.
Franklin Templeton has been expanding its presence in crypto. It launched Bitcoin and Ethereum ETFs in 2024 and is seeking approval for a Crypto Index ETF.
On February 10, 2025, it registered a Solana ETF trust in Delaware, reflecting its growing interest in the network. However, regulatory challenges remain, as lawsuits allege that SOL is an unregistered security, potentially complicating ETF approvals.
Also Read: SEC Approves Hashdex and Franklin Bitcoin Index ETFs
