Franklin Templeton’s money market fund launches on Solana – Is BlackRock losing ground?

• Franklin Templeton expands FOBXX to Solana, enhancing its blockchain presence.
• Institutional investment in Solana surges, solidifying its role in decentralized finance and tokenization.

Franklin Templeton has expanded its tokenized money market fund, Franklin OnChain US Government Money Fund (FOBXX), to the Solana [SOL] blockchain, further strengthening its presence in the digital asset space.

Franklin Templeton launches FOBXX

With $1.6 trillion in assets under management, the firm announced this move on the 12th of February, building on FOBXX’s multi-chain strategy.

Originally launched in 2021, the fund has already integrated with Ethereum [ETH], Coinbase’s Base, Aptos [APT], and Avalanche [AVAX], while Stellar [XLM] remains its primary blockchain.

Thus, as the third-largest tokenized money market fund, FOBXX is nearing a total asset value of $600 million, highlighting its growing adoption.

Additionally, it also holds the distinction of being the world’s first mutual fund to leverage blockchain technology for transaction processing and share ownership recording, with each share represented by a BENJI token.

Remarking on the same, Franklin Templeton took to X (formerly Twitter) and said,

“New chain unlocked. BENJI is now live on solana! Solana is a fast, secure and censorship resistant Layer 1 blockchain encouraging global adoption via its open infrastructure.”

Solana’s growing traction

Needless to say, institutional interest in the Solana network has been on the rise, signaling a shift beyond its reputation as a hub for memecoins.

In Q3 2024, investments in decentralized applications built on SOL surged by 54%, reaching $173 million, reflecting growing confidence among wealth managers and hedge funds.

The token itself has staged a remarkable recovery from the bear market lows of under $10 following FTX’s collapse. 

It recently hit a 52-week high of $265.10, partly fueled by excitement surrounding former U.S. President Donald Trump’s memecoin launch on the network.

Additionally, Solana has emerged as the dominant platform for launching new tokens, particularly within decentralized trading.

A report from Pantera Capital revealed that SOL now accounts for over 90% of new tokens listed on decentralized exchanges—an extraordinary jump from just 1% at the end of 2023.

Echoing similar sentiments, Cosmo Jiang and Eric Wallach in the same report noted, 

“Even when innovation doesn’t start on Solana, it eventually finds its way there.”

BlackRock’s BUIDL vs. Franklin Templeton’s FOBXX

However, as the firm strengthens its foothold, it faces growing competition from BlackRock’s BUIDL fund, which has surged past Franklin’s BENJI token in market capitalization, reaching $637 million.

With tokenized treasury products now totaling $3.6 billion, the race for dominance in this emerging sector is intensifying.

Beyond its money market fund, Franklin Templeton has been actively expanding its crypto offerings, launching Bitcoin [BTC] and Ethereum [ETH] ETFs while seeking SEC approval for a Crypto Index ETF.

Its latest move—a Delaware-based trust linked to a Solana ETF—further highlights its strategic push into blockchain-based investment products.

Therefore, as institutions embrace tokenized assets, Franklin Templeton’s innovation could help shape the future of digital finance.