Key Highlights:
- Franklin Templeton’s OnChain U.S. Government Money Market Fund debuts on Coinbase’s Base, marking a historic move as the first asset manager on this layer-2 network.
- Now accessible on six blockchains, FOBXX brings a $410 million fund straight into the Web3 world.
Paradisers! Could Franklin Templeton be unlocking the next financial frontier? The Wall Street giant has officially rolled out its OnChain U.S. Government Money Market Fund (FOBXX) on Coinbase’s Base, making it the first asset manager to venture onto this layer-2 blockchain. If you thought Web3 was for DeFi maximalists only, think again, traditional finance is knocking.
“This isn’t just a test run; it’s a clear signal to investors about the future of finance,” said Coinbase’s Anthony Bassili. With the fund already available on blockchains like Arbitrum, Polygon, and Avalanche, Base is now the sixth platform to support FOBXX, which carries a market cap of $410 million.
Why Base, Why Now?
Since its launch in 2022, Coinbase’s Base has become a rising star in the layer-2 universe, quickly stacking up $8 billion in total value locked (TVL) and outpacing several of its rivals. Only Arbitrum holds a bigger share, but Base’s popularity shows how eager the market is for layer-2 solutions that make Ethereum’s functionality both faster and cheaper, an ideal playground for products like FOBXX.
This adoption doesn’t just represent a single fund moving onto blockchain; it’s a big step for the financial sector as it tiptoes (or maybe jumps) into on-chain operations.
Franklin Templeton’s choice of Base underscores the firm’s drive to modernize its investment tools with speed and efficiency while sidestepping some of Ethereum’s high gas fees.
A Glimpse at the Future?
Launched in 2021, FOBXX was the first money market fund to use public blockchain for transactions and ownership, blazing a trail that other traditional assets could soon follow. With Base handling over 55% more transactions quarter-over-quarter, its future looks promising.
Could this be the start of a wave of asset managers jumping onto the blockchain? If Franklin Templeton’s debut is any indication, it’s a safe bet.
