Aptos and Franklin Templeton Launch $400M Tokenized Fund on Blockchain

Aptos Labs has taken a significant step in the evolution of institutional finance by supporting Franklin Templeton in launching a $400 million tokenized fund on its high-performance blockchain [1]. The OnChain U.S. Government Money Fund (FOBXX), now live on Aptos, is part of a broader initiative to bridge traditional finance (TradFi) with blockchain technology, offering investors enhanced transparency, liquidity, and efficiency [1]. This collaboration was highlighted during an OMFIF roundtable, where industry leaders from Franklin Templeton, Stellar, and R3 convened to discuss the transformative potential of public blockchains in regulated finance [1].

The FOBXX fund is available on multiple blockchain platforms, including Aptos, Avalanche, Stellar, Arbitrum, and Polygon, making it one of the few tokenized funds with cross-chain deployment [1]. Investors can now hold shares in U.S. government securities directly in digital wallets via the Benji Investments app, combining the benefits of blockchain technology with the security and familiarity of traditional financial instruments [1]. The fund has grown significantly since its launch in October 2024 and is reported to have held total assets of over $743 million as of June 30, 2025 [1].

Aptos' role in this initiative underscores its emergence as a key player in institutional-grade blockchain infrastructure. As a Layer 1 platform, Aptos offers scalability, safety, and reliability—critical attributes for supporting real-world financial applications [1]. The integration of the FOBXX fund demonstrates how public blockchains can serve as a foundational layer for regulated financial products, offering faster settlement times, reduced counterparty risk, and more efficient operations [1]. Solomon Tesfaye, Aptos Labs' Chief Business Officer, emphasized the platform’s commitment to building a robust ecosystem for digital assets during the OMFIF event [1].

Franklin Templeton's move into on-chain finance is not an isolated development but part of a larger trend in institutional adoption of blockchain. The firm’s earlier launch of the Benji app on Ethereum signaled its long-term interest in blockchain-based investment solutions [1]. This latest initiative reflects a strategic shift toward integrating blockchain technology into traditional investment offerings, positioning Franklin Templeton at the forefront of the tokenization movement [1].

The broader implications of this partnership extend beyond a single fund. As traditional financial institutions increasingly explore the benefits of on-chain solutions, the boundaries between decentralized finance (DeFi) and TradFi are expected to continue to blur [1]. The tokenization of real-world assets, such as government securities, is seen as a key driver of this evolution, enabling greater accessibility and efficiency in financial markets [1]. With the FOBXX fund now operational on multiple chains, including Aptos, the industry is gaining a clearer picture of how blockchain can meet the demands of institutional-grade financial products while maintaining regulatory compliance [1].

Source: [1] title1.............................(https://coinedition.com/aptos-franklin-templeton-on-chain-finance/)