Franklin Templeton has made a significant move by expanding its OnChain U.S. Government Money Market Fund (FOBXX) to Ethereum, the second-largest blockchain by market cap. This marks a key development in the asset manager’s strategy, having already added new blockchains like Coinbase’s Base, Aptos, and Avalanche earlier this year. Stellar remains the primary network, emphasizing the growing trust and utilization of public blockchains in mainstream finance.

Launched in 2021, FOBXX was the pioneer money market fund to utilize public blockchain technology for recording transactions and ownership, boasting a current market cap of $410 million. It ranks as the third-largest tokenized money market fund, trailing BlackRock’s BUIDL and Ondo’s USDY, which have rapidly accrued assets under management since their inception.

Ethereum’s adoption by Franklin Templeton not only underscores its status as a preferred platform for issuing tokenized assets but also aligns with Grayscale’s recent findings. Grayscale highlighted Ethereum’s meaningful decentralization and neutrality, essential for a global tokenization platform. This step by Franklin Templeton could set a benchmark for asset tokenization, potentially ushering in a new era for financial transactions on blockchain platforms.