- Solana now hosts FOBXX, a tokenized money market fund from Franklin Templeton.
- Analysts project SOL price uptrend amid a growing adoption trend.
Franklin Templeton, a global investment firm with $1.6 trillion of assets under management, is going big on Solana (SOL). Only a day after filing for a Solana Trust, Franklin Templeton has unveiled its tokenized money fund on the Solana network.
Franklin Templeton’s Tokenized Fund Goes Live on Solana
The trillion-dollar asset manager gave the announcement on Tuesday in an X post. The asset manager disclosed that its Franklin OnChain US Government Money Fund, FOBXX, has debuted on Solana.
The move marks the latest expansion of the FOBXX fund to another blockchain. The other blockchains where FOBXX is already available include Ethereum, Stellar, Polygon, Base, Avalanche, Arbitrum, and Aptos.
Franklin Templeton hailed Solana as a Layer-1 blockchain with a fast, secure, and censorship network that encourages global adoption through its open infrastructure.
The FOBXX, which Launched in 2021, invests at least 99.5% of its total assets in US government securities and cash. In addition, FOBXX invests in fully collateralized repurchase agreements with minimal credit risks.
The fund had total assets worth $512 million with a seven-day effective yield of 4.2% as of January 31, 2025. FOBXX, with a $594 million market cap, is the third-largest tokenized money market fund. The fund offers investors a transparent, blockchain-backed connection to a US government-supported money market product.
The launch of FOBXX on Solana aligns with Franklin Templeton’s strategy of diversifying blockchain integrations. In a recent update CNF covered, Franklin Templeton introduced FOBXX on Coinbase’s Layer-2 blockchain solution, Base.
Meanwhile, Franklin Templeton unveiled the FOBXX launch on Solana only a day after it registered a trust in Delaware linked to a Solana ETF. Historically, such a move precedes a formal S-1 registration filing with the US Securities and Exchange Commission (SEC).
This indicates that Franklin Templeton could soon submit an application with the SEC to launch a SOL ETF. However, the approval of such ETFs could face complications due to lawsuits that allege SOL is an unregistered security.
Implication for Solana
The launch of FOBXX on Solana provides a bullish outlook for the altcoin’s price, which is struggling to stay above $200. According to CoinMarketCap, SOL is the sixth-largest crypto by market capitalization, valued at $94 billion.
Within the last 24 hours, the value of SOL has decreased by 1.61%, setting the price at $193. However, the trading volume is up by over 37% to $4.2 billion, suggesting investors’ willingness to accumulate the asset.
With other positive developments in the Solana network, market participants claim SOL is set for a rally. As featured in our recent coverage, crypto exchange Coinbase has unveiled plans for SOL futures, expanding into the derivatives market.
This has fueled speculations that SOL could hit $300, especially if it maintains its current momentum.
