Franklin Templeton Unveils U.S. Money Fund on Arbitrum

Steven Goldfeder, CEO and Co-Founder of Offchain Labs—the core contributors to Arbitrum—expressed excitement about the partnership, stating:

“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 Franklin Templeton join the Arbitrum ecosystem and look forward to the transformative impact their participation will bring to our community.”

The Arbitrum Collaboration: A Strategic Move

As per reports, The decision to launch FOBXX on Arbitrum aligns with Franklin Templeton’s broader strategy of embracing decentralized finance. This collaboration is expected to accelerate the integration of DeFi within traditional financial services, providing a seamless experience for investors who wish to gain exposure to blockchain-based assets.

"Expanding into the Arbitrum ecosystem is an important step on our journey to empower our asset management capabilities with blockchain technology," said Roger Bayston, Head of Digital Assets at Franklin Templeton. "We are enthusiastic about the opportunities this partnership will unlock for our firm and our clients."

Investors can now access FOBXX through the Benji Investments platform, where they can manage their investments using digital wallets. The platform’s integration with Arbitrum allows investors to utilize the network upon request, subject to eligibility requirements.

Rising Importance of On-Chain Treasuries

FOBXX has contributed to this growth, with its market cap increasing by 26.7% since the start of the year, now standing at $412.7 million. It ranks as the second-largest on-chain treasury fund, behind only the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which has reached a market cap of $510.3 million since its launch in March 2024.