$1.5 Trillion Asset Management Giant Franklin Templeton Debuts Tokenized Money Market Fund on Coinbase’s Layer 2 Base

• Franklin Templeton’s move to Coinbase’s Base marks a major step toward integrating traditional finance with blockchain.
• FOBXX on Base exemplifies blockchain’s potential for efficiency, with tokenized assets now spanning multiple blockchain networks.

For the first time, an established fund has launched on Coinbase’s Base network, with Franklin Templeton introducing its OnChain U.S. Government Money Market Fund (FOBXX). By moving FOBXX to Base—a layer-2 blockchain designed to increase Ethereum’s transaction speed and reduce fees—Franklin Templeton has expanded its crypto presence.

Previously, Franklin Templeton sought SEC approval for a dual Bitcoin and Ethereum ETF, as highlighted in CNF’s prior coverage, further signaling its commitment to the crypto space. The fund invests at least 99.5% of its total assets in U.S. government securities, cash, and repurchase agreements fully collateralized by U.S. government securities or cash, demonstrating Franklin Templeton’s confidence in blockchain’s potential to streamline traditional finance.

Anthony Bassili, Coinbase’s head of tokenization, noted that the launch underscores blockchain’s growing appeal among financial institutions aiming to cut costs and speed up transactions.

Expanding Blockchain Presence

While Stellar remains the fund’s primary network, adding Base aligns with Franklin Templeton’s strategy of diversifying blockchain integrations. With FOBXX now also available on Base, Franklin Templeton continues to broaden its blockchain reach, with the fund already accessible on Stellar, Arbitrum, Polygon, Avalanche, and Aptos.

FOBXX, with a $410 million market cap, is the largest tokenized fund to date, offering investors a transparent, blockchain-backed link to a U.S. government-supported money market product.

Navigating Regulatory Challenges

Recently, the U.S. Securities and Exchange Commission (SEC) began investigating trading issues at Western Asset, resulting in $23.6 billion in outflows. While Franklin Templeton embraces blockchain, it faces challenges in its fixed-income division, specifically with Western Asset Management. However, CEO Jenny Johnson clarified that these issues are isolated and do not impact other areas of the firm, where inflows remain steady.

Subsequently, Bitcoin (BTC) is trading at $69,742.04, reflecting a decline of 3.50% over the past day but a surge of 2.80% over the past week, according to CoinMarketCap.

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