Franklin Templeton’s Strategic Move: Tokenized Treasury Fund Lands on solana

February 12, 2025

Unlocking New Opportunities with Solana

Renowned asset manager Franklin Templeton has made a meaningful stride in the cryptocurrency landscape by extending its tokenized treasury fund to the Solana blockchain. This strategic move, announced on social media platform X, marks Solana as the eighth blockchain to host Franklin’s OnChain U.S. Government Money Fund, commonly referred to as FOBXX. The initiative follows the registration of the Franklin Solana Trust in Delaware earlier this week.

With a staggering $1.5 trillion in assets under management, Franklin Templeton’s decision to integrate solana underscores the blockchain’s growing prominence. Solana, known for its speed, security, and resistance to censorship, offers an open infrastructure that promotes global adoption. This aligns perfectly with Franklin Templeton’s vision of expanding its financial services into the decentralized realm.

FOBXX’s Journey Across Blockchains

Launched on Stellar in 2021, FOBXX has rapidly evolved into one of the world’s leading money-market funds.As of February 11, the fund boasts a market cap of approximately $495 million, placing it second only to USYC, the on-chain depiction of Hashnote International short Duration Yield Fund Ltd. (SDYF), which holds a market cap exceeding $1 billion, according to Dune Analytics.

Though, competition in the tokenized treasury fund market is fierce. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has been a notable rival, with a market cap of around $394 million as of Tuesday. Despite this, FOBXX continues to hold a strong position, demonstrating the fund’s resilience and appeal.

Franklin Templeton’s Endorsement of Solana

Franklin Templeton’s interest in Solana’s ecosystem is not new. The Wall street giant has consistently shown support for Solana’s advancements. Following the SEC’s approval of US-listed spot Bitcoin ETFs, including Franklin’s EZBC, the firm expressed admiration for Solana co-founder Anatoly yakovenko’s vision.

Franklin Templeton highlighted key developments in the Solana ecosystem during Q4 2023, such as progress in DePIN, DeFi, the meme coin market, NFT innovation, and the launch of the Firedancer scaling solution. These advancements have solidified Solana’s position as a leading blockchain platform.

Steps Toward a Solana ETF

The establishment of the Franklin Solana Trust in Delaware signals Franklin Templeton’s intention to introduce a Solana ETF in the U.S. market.The registration by CSC Delaware Trust Company is a crucial step toward filing the necessary forms with the SEC. This ETF aims to track the price movement of SOL, the fifth-largest cryptocurrency by market cap.

As the crypto market continues to evolve, Franklin Templeton’s move to Solana represents a significant milestone. By leveraging Solana’s capabilities, the firm is poised to offer investors a new avenue for diversifying their portfolios and participating in the burgeoning world of decentralized finance.

Stay tuned for further updates as this exciting progress unfolds in the crypto ecosystem.