Franklin Templeton’s OnChain US Government Money Market Fund can now be traded on Coinbase’s Base blockchain.
This is the first time that an asset manager is building on the layer 2 blockchain.
The fund, with a market cap of $410 million, is available on five other blockchains, with Stellar being the primary network.
Wall Street giant Franklin Templeton said yes OnChain US Government Money Market Fund (FOBXX) is now available on Coinbase’s (COIN) layer-2 blockchain, Base.
Base will be the sixth blockchain on which shares of the fund can be traded. They are already available on Arbitrum, Polygon, Avalanche, Aptos and Stellar, which serves as the primary public blockchain.
“This is the first major asset manager to launch directly on Base, a clear signal to investors and issuers of what’s to come,” said Anthony Bassili, head of tokenization at Coinbase.
Layer 2, which went live in 2022, represented a major step in Coinbase’s evolution and opened a new business for the exchange that went beyond a marketplace for crypto. Since then, it has become a fast-growing part of the business, with 55% more transactions handled in the third quarter than in the second quarter.
Base quickly became one of the most popular layer 2 blockchains in the ecosystem. According to company data, it currently has more than $8 billion in total value blocked (TVL). L2Beat, which is quickly passing some of its more established competitors. Only Arbitrum has more.
Layer 2s are designed to perform transactions faster and cheaper than the base Ethereum blockchain, making them a popular choice for products like FOBXX.
“Financial institutions like Franklin Templeton are increasingly taking advantage of fast, low-cost onchain technology to modernize the financial system,” Bassili said.
Launched in 2021, FOBXX was the first money market fund to use a public blockchain to record transactions and ownership. The fund is the second largest tokenized fund on the market, with a market capitalization of $410 million. rwa.xyz.