Franklin Templeton Expands Tokenized Fund to Solana, Eyes Future ETF

Franklin Templeton has expanded its blockchain initiatives by launching its tokenized money market fund, FOBXX, on Solana.

This move underscores the asset manager’s confidence in Solana’s infrastructure, citing its speed, security, and resilience.

FOBXX, designed to maintain a stable $1 share price, is already accessible on Ethereum, Base, Polygon, Avalanche, Aptos, and Arbitrum, having initially launched on Stellar four years ago. The fund primarily invests in U.S. government securities, cash, and repurchase agreements backed by government assets. Since its 2021 debut, it has grown to a $594 million market cap, ranking behind BlackRock’s BUIDL and Hashnote’s USYC.

Franklin Templeton’s decision to integrate with Solana coincides with its recent filing in Delaware for a Solana ETF, suggesting a potential SEC filing in the near future. The firm has previously expressed strong confidence in Solana, predicting it could become the third-largest cryptocurrency after Bitcoin and Ethereum.

Meanwhile, Anthony Scaramucci has also voiced bullish sentiments on Solana, emphasizing its low fees and fast transaction speeds. He believes Solana will lead the tokenization revolution, particularly as traditional assets like stocks and bonds transition to blockchain.

The tokenization sector is poised for massive growth, with estimates from BCG, McKinsey, and Brevan Howard pointing to a multitrillion-dollar opportunity. BlackRock CEO Larry Fink has echoed this sentiment, describing tokenization as the future of financial markets.