Franklin Templeton has introduced a new option for investors to trade shares of its OnChain U.S. Government Money Market Fund (FOBXX) on the Aptos (APT) blockchain. This blockchain, inspired by the discontinued Diem (formerly Libra) blockchain, is the latest network to offer this fund, which is currently the second-largest tokenized fund on the market with a $435 million market cap. Previously, the fund was available on Ethereum via Arbitrum, Stellar, Polygon, and Avalanche.
Roger Bayston, head of digital assets at Franklin Templeton, explained that the decision to add the fund to the Aptos blockchain was based on the blockchain’s unique features, which align with the firm’s strict suitability standards for its Benji platform. Each Benji token on the Aptos blockchain represents one share of the fund.
Aptos is a relatively new Layer 1 blockchain that was launched in 2022. It utilizes the Move programming language, which is said to enable faster and more secure transactions. The developers behind Aptos, Aptos Labs, have been focused on bridging the gap between decentralized finance (DeFi) and traditional institutions, similar to other Layer 1 blockchains.
In an effort to make it easier for institutions to engage in decentralized finance, Aptos Labs has partnered with Microsoft, Brevan Howard, and South Korean telecommunications operator SK Telecom. These partnerships aim to facilitate experimentation in the DeFi space and drive innovation in the financial sector.
Bashar Lazaar, Head of Grants and Ecosystem at Aptos Foundation, praised Franklin Templeton for their commitment to innovation in creating a more decentralized and accessible financial future. He highlighted the importance of connecting traditional finance (TradFi) and decentralized finance (DeFi) worlds, as well as integrating different blockchain networks like EVM and non-EVM networks. The integration of the Benji Investments platform with the Aptos Network marks a significant step towards achieving this vision.
Overall, the addition of Franklin Templeton’s OnChain U.S. Government Money Market Fund (FOBXX) to the Aptos blockchain demonstrates a growing trend of traditional financial institutions embracing blockchain technology and decentralized finance. As more institutions explore the possibilities offered by blockchain networks, we can expect to see further innovations and collaborations that will shape the future of finance.