The border between traditional finance and the universe of cryptos continues to fade. Franklin Templeton, mastodon of asset management with 1.6 trillion of dollars under management, takes one more step towards the integration of blockchain and announces the extension of its tokenized American monetary fund (FOBXX) on Solana. This strategic movement, which intervenes in a context of the rise of token financial assets, could well constitute a turn in the institutional adoption of this technology. After having already established this fund on Ethereum, Avalanche and several Blockchains of layer 2, the American company now puts on Solana, an crypto infrastructure which has seduced beyond its initial playground image for the same.
A token monetary fund now accessible on Solana
Franklin Templeton announced on February 12 the integration of his onchain US Government Money Fund (FOBXX) on Solana, a blockchain known for his speed and reduced costs. Created in 2021, this fund is based on entirely digital management and offers exposure to the titles of the American Treasury, liquidity and fully guaranteed buyout agreements. As of January 31, 2025, its assets under management amounted to $ 512 million, with an effective return over seven days of 4.2 %.
Thanks to this development, Franklin Templeton extends his presence on layer 1 blockchains while Solana continues to structure his institutional ecosystem. In practice, each share of the fund is represented by a Benji token, which allows a monitoring and registration of transactions on the blockchain.
Franklin Templeton seeks to take advantage of a network offering rapid and inexpensive transactions, an alternative to Ethereum, whose congestion and high costs remain an obstacle, as illustrated by his recent investment on Solara. This initiative is part of a broader trend, where more and more institutional actors explore the advantages of decentralized finance (DEFI) without adopting the inherent risks.
A growing institutional adoption on Solana
The choice of Solana by Franklin Templeton fits into an increasing institutional adoption movement. While blockchain was once associated with excessive volatility and the same, it now attracts major asset managers and Hedge Funds. In February 2024, the company even recorded a trust linked to a potential ETF Solana in the state of Delaware, an initiative in the Crypto universe which underlines its ambition to develop financial products backed by this ecosystem.
The institutional interest in Solana continues to grow: according to Coinshares, investments in decentralized applications based on Solana jumped 54 % in the third quarter of 2024, and reached $ 173 million. At the same time, Apollo Global Management launched a tokenized institutional investment fund on this blockchain, which testifies to a change in perception in financial circles.
However, the regulatory question could slow down this momentum. In progress legal proceedings question Solana, and accuse his token soil of being an unregistered title. If these actions were to succeed, they could complicate the approval of a possible ETF Solana and slow down institutional adoption.
The expansion of FOBXX on Solana confirms that the tokenization of traditional financial assets becomes a priority for major asset managers. This transformation could revolutionize finance by making transactions more fluid, transparent and accessible. The question remains whether the crypto regulators will follow this dynamic or if they will seek to slow down the rise in token assets for fear of a lack of control over these new financial instruments. Franklin Templeton, in any case, seems convinced that the future of investment will go through the blockchain.
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
