Franklin Templeton Expands On-Chain Fund to Solana, Boosting Institutional Crypto Adoption

On February 12, Franklin Templeton, managing $1.6 trillion in assets, announced the launch of its OnChain U.S. Government Money Fund (FOBXX) on the Solana blockchain, signaling further expansion into blockchain technology. FOBXX, with $51.2 million in assets as of January 31, 2025, and a 7-day yield of 4.2%, invests in U.S. government securities and aims for a stable $1 share price. This move extends Franklin Templeton's presence across multiple blockchains, including Ethereum, Avalanche, Arbitrum, Base, Polygon, Aptos, and Stellar, enhancing Solana's appeal to institutional investors. Franklin Templeton also registered a trust related to a Solana ETF in Delaware on February 10, adding to the growing interest in Solana-based investment products. The firm launched a Bitcoin ETF in January 2024 and an Ether ETF in July 2024 and is seeking approval for a cryptocurrency index ETF from the SEC. Solana's ecosystem saw a 54% increase in institutional investment into its DApps in Q3 2024, reaching $173 million, with more asset managers expanding their SOL investments. Despite past challenges, SOL has recovered, reaching a recent 52-week high of $265.10, influenced by factors including the launch of meme coins on Solana. Franklin Templeton manages $594 million worth of tokenized Treasuries and is an early mover onto Solana.