It’s a stamp of approval for the layer 2 from United States regulators.
According to an Aug. 8 announcement, Franklin Templeton is launching its tokenized money fund on the Arbitrum network in what the asset manager describes as “an ongoing effort to bridge the gap between traditional and decentralized finance.”
Created in 2021, the Franklin OnChain US Government Money Fund (FOBXX) is accessible through Franklin Templeton’s Benji Investments platform. Users can now choose to acquire and hold the fund’s tokenized shares on Arbitrum, along with other networks such as Stellar and Polygon.
Money funds generate low-risk yields for investors by holding highly liquid assets such as short-dated Treasury bills and commercial paper. Franklin Templeton’s FOBXX currently has net assets of approximately $420 million and has been generating annualized returns of about 5.25% as of June 2024.
