TL;DR
- Franklin Templeton has integrated its FOBXX fund into Solana to leverage its speed and security, expanding its availability beyond networks like Ethereum, Base, and Polygon.
- The fund maintains a stable $1 per share price and is backed 99.5% by U.S. government securities, cash, and repurchase agreements.
- The announcement aligns with growing institutional interest in Solana and the potential filing of a Solana-based ETF.
Franklin Templeton has integrated its Franklin OnChain US Government Money Fund (FOBXX) into the Solana network. The goal is to leverage blockchain speed and security to enhance fund accessibility, which is already available on networks like Ethereum, Base, Polygon, Avalanche, Aptos, and Arbitrum.
The fund maintains a stable $1 per share price and allocates at least 99.5% of its assets to U.S. government securities, cash, and repurchase agreements backed by these instruments.
This announcement should be understood in the context of growing institutional interest in blockchain-based solutions. Franklin Templeton has highlighted Solana’s processing capacity and censorship resistance to justify this decision. The fund was first integrated into a blockchain four years ago via Stellar, and its expansion to other networks has strengthened its reach within the digital ecosystem.
Franklin Templeton: Solana ETF
The fund’s launch on Solana comes shortly after Franklin Templeton filed a request in Delaware related to a possible Solana ETF. Although a formal SEC filing has not yet been confirmed, this suggests the firm is evaluating new opportunities around SOL. In 2023, the asset manager predicted that Solana could establish itself as the third most relevant cryptocurrency after Bitcoin and Ethereum.
At the same time, well-known industry figures have expressed optimism about Solana’s role in market evolution. In a recent interview, Anthony Scaramucci stated his preference for SOL over ETH due to its low fees and speed. He believes this network has enormous potential in the tokenization of traditional assets such as stocks and bonds.
Tokenization is the Future
Tokenization has become a crucial aspect of the financial sector, with firms like BlackRock exploring its implementation. Larry Fink, the company’s CEO, has publicly supported this technology and, in 2022, stated that it represents the future of financial markets.
Institutional interest in Solana continues to grow, driven by its infrastructure and processing capabilities. The integration of FOBXX strengthens blockchain penetration in financial product offerings
