Solana Draws Franklin Templeton for Tokenized Fund Expansion

The boundary between traditional finance and the world of crypto continues to blur. Franklin Templeton, a giant in asset management with $1.6 trillion under management, takes another step towards integrating blockchain and announces the extension of its tokenized U.S. Money Fund (FOBXX) on Solana. This strategic move, which takes place in a context of the rising prominence of tokenized financial assets, could well mark a turning point in the institutional adoption of this technology. Having already established this fund on Ethereum, Avalanche, and several layer 2 blockchains, the American company is now betting on Solana, a crypto infrastructure that has successfully attracted attention beyond its initial image as a playground for memecoins.

A Tokenized Money Fund Now Accessible on Solana

Franklin Templeton announced on February 12 the integration of its OnChain U.S. Government Money Fund (FOBXX) on Solana, a blockchain known for its speed and low fees. Established in 2021, this fund is based on fully digital management and offers exposure to U.S. Treasury securities, cash, and fully guaranteed repurchase agreements. As of January 31, 2025, its assets under management amounted to $512 million, with an effective yield over seven days of 4.2 %.

Thanks to this development, Franklin Templeton is expanding its presence on layer 1 blockchains as Solana continues to structure its institutional ecosystem. In practice, each share of the fund is represented by a BENJI token, which allows for tracking and recording transactions on the blockchain.

With Solana, Franklin Templeton seeks to take advantage of a network that offers fast and inexpensive transactions, as an alternative to Ethereum, where congestion and high fees still pose a barrier. This initiative fits into a broader trend, where an increasing number of institutional players explore the benefits of decentralized finance (DeFi) without adopting its inherent risks.

Growing Institutional Adoption on Solana

Franklin Templeton’s choice of Solana is part of a growing movement of institutional adoption. While the blockchain was once associated with excessive volatility and memecoins, it now attracts large asset managers and hedge funds. In February 2024, the company even registered a trust related to a potential Solana ETF in the state of Delaware, an initiative in the crypto universe that underscores its ambition to develop financial products backed by this ecosystem.

Institutional interest in Solana continues to grow : according to CoinShares, investments in decentralized applications based on Solana skyrocketed by 54 % in the third quarter of 2024, reaching $173 million. At the same time, Apollo Global Management launched a tokenized institutional investment fund on this blockchain, reflecting a shift in perception within financial circles.

However, regulatory questions could dampen this momentum. Ongoing litigation calls Solana into question, accusing its SOL token of being an unregistered security. If these actions were to succeed, they could complicate the approval of a potential Solana ETF and hinder institutional adoption.

The expansion of FOBXX on Solana confirms that the tokenization of traditional financial assets is becoming a priority for major asset managers. This transformation could revolutionize finance by making transactions smoother, more transparent, and more accessible. The question remains whether crypto regulators will follow this trend or seek to curb the rise of tokenized assets for fear of losing control over these new financial instruments. Franklin Templeton, in any case, seems convinced that the future of investing will pass through blockchain.