Franklin Templeton Expands Tokenized Fund to Solana Blockchain

Franklin Templeton, a leading global investment management firm, has expanded its tokenized money market fund, Franklin OnChain US Government Money Fund (FOBXX), to the Solana blockchain. This move, announced on February 12, further strengthens Franklin Templeton's presence in the digital asset space, as the fund already integrates with Ethereum, Coinbase's Base, and remains primarily on Ethereum.

The fund, with $1.6 trillion in assets under management, is the third-largest tokenized money market fund, nearing a total asset value of $600 million. It is also the world's first mutual fund to leverage blockchain technology for transaction processing and share ownership recording, with each share represented by a BENJI token. Franklin Templeton expressed excitement about the expansion to Solana, stating, "New chain unlocked. BENJI is now live on Solana! Solana is a fast, secure, and censorship-resistant Layer 1 blockchain encouraging global adoption via its open infrastructure."

Solana's growing traction has attracted institutional interest, signaling a shift beyond its reputation as a hub for memecoins. In Q3 2024, investments in decentralized applications built on SOL surged by 54%, reaching $173 million. The token itself has staged a remarkable recovery from the bear market lows of under $10 following FTX's collapse, recently hitting a 52-week high of $265.10. Solana has emerged as the dominant platform for launching new tokens, particularly within decentralized trading, with SOL now accounting for over 90% of new tokens listed on decentralized exchanges.

As Franklin Templeton strengthens its foothold, it faces growing competition from BlackRock's BUIDL fund, which has surged past Franklin's BENJI token in market capitalization, reaching $637 million. Tokenized treasury products now total $3.6 billion, intensifying the race for dominance in this emerging sector. Beyond its money market fund, Franklin Templeton has been actively expanding its crypto offerings, launching ETFs and seeking SEC approval for a Crypto Index ETF. Its latest move—a Delaware-based trust linked to a Solana ETF—further highlights its strategic push into blockchain-based investment products.