Franklin Templeton launches its tokenized cash fund on Aptos

• Franklin Templeton has launched the OnChain U.S. Authorities Cash Fund (FOBXX) on Aptos.
• FOBXX at the moment has a market cap of over $435 million, second amongst tokenized US Treasuries behind BlackRock fund BUIDL.

Franklin Templeton has expanded its OnChain U.S. Authorities Cash Fund (FOBXX) to the layer-1 blockchain Aptos.

The $1.6 trillion asset supervisor, which additionally affords the Franklin Bitcoin ETF (EZBC) and Franklin Ethereum ETF (EZET), introduced the launch of FOBXX on Aptos on Wednesday, October 2, 2024. It’s one other milestone for the corporate after its latest growth of the tokenized cash fund to Avalanche.

FOBXX launched in 2021 and is a US Treasury-backed fund that brings the advantages of tokenized real-world belongings to buyers.

With its growth to Aptos, the fund has expanded to a non-Ethereum Digital Machine (EVM) and provides to institutional investor entry by means of Franklin Templeton’s platform Benji Investments.

FOBXX can be represented by Franklin’s BENJI token on the Aptos community, serving to to merge conventional finance (TradFi) and decentralised finance (DeFi). Franklin introduced its cash market fund to Polygon and Stellar blockchain networks in April 2024.

The agency then expanded it to Arbitrum in August 2024.

Tokenized treasuries market development

Based on knowledge from RWA.xyz, FOBXX is at the moment the second largest tokenized fund with over $435 million in belongings.

The highest US Treasury-backed asset is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which launched on Ethereum and at the moment has over $518 million in belongings below administration.

Buyers have more and more regarded to faucet into alternatives within the RWA market. This has seen treasury-related merchandise such because the Ondo U.S. Greenback Yield (USDY), Hashnote Quick Length Yield Coin (USYC) and OpenEden TBILL Vault (TBILL) entice a rising variety of holders.

USDY, USYC and TBILL have market caps of $420 million, $280 million and $116 million respectively. Ondo launched its USDY fund on Sui in March.

In the meantime, the overall worth of tokenized US treasuries, cash-equivalents and bonds, per RWA.xyz, has grown to over $2.27 billion.

That’s up from round $769 million on January 1, 2024, when FOBXX by the way accounted for over $325 million of the overall market worth.

BlackRock’s BUIDL launched in March 2024 and hit $500 million market cap in July.