Franklin Templeton Expands FOBXX To Arbitrum Amid Tokenization Drive

Global asset manager Franklin Templeton has announced the launch of its money market fund on the Arbitrum network. The Franklin OnChain US Government Money Fund (FOBXX) will be available on the blockchain and bridge the gap between traditional and digital finance. This year, more institutions are increasing their presence with digital assets and blockchain technology.

Franklin Templeton Launches FOBXX on Arbitrum 

Franklin Templeton and the Arbitrum Foundation rolled out the FOBXX money fund on the Ethereum layer 2 network. In an Aug 8 announcement, the company highlighted that investors could gain exposure to the fund in digital assets via the Benji Investment Platform, the company’s proprietary blockchain record-keeping system. This is another step in ongoing efforts to bridge the gap between both finance worlds. 

“The collaboration will accelerate the integration of decentralized finance within traditional financial services. By onboarding the Arbitrum network to the Benji Investments platform, Franklin Templeton will further extend the compatibility of FOBXX within the digital assets ecosystem and reach a previously untapped audience for the asset manager.”

With this, investors can use the Arbitrum Network as requested, however, subject to eligibility. Roger Bayston, the wealth manager’s Head of Digital Assets, noted that Arbitrum is an important step in the journey to create asset management services with blockchain technology. Bayston also expressed optimism towards unlocking new opportunities for the firm through this partnership. 

Tokenization Gains Momentum 

Tokenization has become popular as more institutions become invested in the space. This is coupled with the growth in digital asset adoption and an urge to seek scalable financial solutions. FOBXX was launched in 2021 and remains the first US fund to use a public blockchain for processing transactions and recording ownership. 

Steven Goldfeder, an Arbitrum contributor pointed to the firm’s mission for scalable financial solutions. “Franklin Templeton’s commitment to innovation aligns with our mission to provide scalable and efficient solutions for the financial sector. We are excited to see join the Arbitrum ecosystem and look forward to the transformative impact their participation will bring to our community.”

Also Read: Grayscale and Bitwise File To Launch Options on Ethereum ETF

The post Franklin Templeton Expands FOBXX To Arbitrum Amid Tokenization Drive appeared first on CoinGape.