Franklin Templeton Brings Near $600 Million Tokenized Money Market Fund to Solana

Franklin Templeton is bringing its OnChain U.S. Government Money Market Fund (FOBXX) to the Solana blockchain, the latest sign of the network’s burgeoning appeal for tokenized real-world assets (RWAs).

The move makes the third-largest tokenized money market fund available on a platform increasingly favored for new token issuance and decentralized trading over its low transaction costs and fast throughput.

FOBXX, with a market capitalization of $594 million according to RWA.xyz data, is already accessible on Ethereum, Coinbase’s Base, Aptos, and Avalanche, all added last year. Stellar serves as the fund’s primary blockchain.

The fund trails Hashnote’s Short Duration Yield Coin (USYC) and BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) in market size, with the former being used as collateral on the Usual protocol and the latter being issued by the world’s largest asset manager.

Solana’s Rising Prominence Amid Franklin Templeton Backing

While Ethereum currently dominates the tokenization – and decentralized finance — landscape with a 52% market share representing $3.8 billion of tokenized RWAs, Solana is rapidly gaining traction.

Data shows the network has been gaining adoption not only on its decentralized finance applications but also among real-world asset issuers. It received backing from Franklin Templeton last month.

Solana currently ranks seventh in total value of tokenized RWAs, at $135 million, according to available data. However, Franklin Templeton’s move follows Securitize’s expansion of its offerings, including BlackRock’s BUIDL, to Solana in January, signaling growing institutional interest.

SkyBridge founder Anthony Scaramucci, speaking in an interview with CNBC, touted Solana’s speed and efficiency, predicting it will “win the race” in the tokenization arena. The expansion of FOBXX to Solana solidifies the network’s position as a key contender in the rapidly evolving world of on-chain finance.