Franklin Templeton Expands On-Chain Treasuries Fund To Arbitrum

Franklin Templeton, one of the world’s largest asset managers boasting more than $1.6 trillion in assets under management, has launched its on-chain treasuries fund on Arbitrum, the largest Ethereum Layer 2.

Announced on Aug. 8, the Franklin OnChain U.S. Government Money Fund (FOBXX) is now live on Arbitrum. Investors can access the fund via Franklin Templeton’s blockchain-integrated recordkeeping system, Benji, which offers exposure to FOBXX via its BENJI tokens.

“Expanding into the Arbitrum ecosystem is an important step on our journey to empower our asset management capabilities with blockchain technology,” said Roger Bayston, head of digital assets at Franklin Templeton. “The partnership will accelerate the integration of decentralized finance within traditional financial services,” the company added.

“We are excited to see Franklin Templeton join the Arbitrum ecosystem and look forward to the transformative impact their participation will bring to our community,” said Steven Goldfeder, the CEO and co-founder of Offchain Labs, Arbitrum’s core contributor.

Retail investors can access FOBXX via the Benji Investments mobile app, while institutional investors can access the Benji Institutional web portal.

Franklin Templeton first entered the web3 sector with the launch of its Digital Assets division in 2018. The company said its digital assets division has been actively developing blockchain-based solutions, investment strategies, and operating node validators since conception.

Franklin Templeton launched FOBXX on the Stellar Layer 1 network in 2021 April, comprising the first U.S.-registered fund issued via a public blockchain. The firm also launched FOBXX on Polygon in April 2023.

Arbitrum currently ranks as the largest Ethereum Layer 2 by total value locked with $14.1 billion, according to L2beat.

On-chain treasuries boom

The market cap of on-chain treasuries has ballooned in 2024, currently sitting at $1.89 billion after growing 146% from nearly $768 million as the year began, according to Rwa.xyz. FOBXX is up 26.7% since the start of the year with $412.7 million and ranks as the second-largest on-chain treasuries fund.

The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) accounts for the lion’s share of growth, with the fund surging to a market cap of $510.3 million since launching on March 20.

The capitalization of on-chain treasuries suffered a slight pullback from last week’s all-time highs amid the sudden market crash at the start of the week, with BUIDL shedding 3.28%, FOBXX dipping 2.50%, and the sector retracing 1.56% overall.