Franklin Templeton, managing over $1.5 trillion in assets, has announced a significant expansion of its OnChain U.S. Government Money Market Fund (FOBXX) by integrating it onto the Ethereum-based layer-2 blockchain, Arbitrum. This marks a strategic move beyond its current presence on Stellar and Polygon networks, showcasing the fund’s adaptability in the evolving financial landscape. The initiative aims to bridge traditional finance with decentralized systems, enhancing access and efficiency.

The company emphasized that the integration into Arbitrum is targeted at institutional wallets, reflecting a commitment to leveraging blockchain for robust asset management. According to Roger Bayston, head of digital assets at Franklin Templeton, this transition is key to harnessing the potential of blockchain technology. The fund, established in 2021 with a $420 million market cap, was a pioneer in using public blockchains for recording transactions and ownership, illustrating a forward-thinking approach in finance.

With this move, Franklin Templeton joins other industry giants like BlackRock in adopting blockchain to tokenize real world assets, facilitating a new era of digital finance. This strategic expansion is poised to attract a broader audience, fostering greater integration of decentralized finance within traditional investment frameworks.

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