- Franklin Templeton’s OnChain US Government Money Market Fund is now available on Arbitrum, alongside Stellar and Polygon
- This integration highlights Arbitrum’s growing importance in the asset tokenization space and brings more attention to layer 2 solutions
- The move signals a broader trend where traditional financial players are increasingly exploring blockchain and asset tokenization across various networks
Tokenized assets are finally getting the spotlight they deserve, with major players from traditional finance jumping on board. Franklin Templeton has now made its OnChain US Government Money Market Fund available on Arbitrum, in addition to Stellar and Polygon. This move is a big win for Arbitrum and a significant step forward for the tokenized asset industry.
Franklin Templeton Boosts Arbitrum with Tokenized Assets
Tokenized assets are really coming into their own, and it’s thanks in part to big names from traditional finance. Franklin Templeton, for example, launched its OnChain US Government Money Market Fund a while ago, and it was only available on a couple of chains. Now, it’s also on Arbitrum, alongside Stellar and Polygon where it’s been for some time.
This is a big deal for Arbitrum, making its debut in a really exciting part of the crypto world. It’s also a great sign for the tokenized asset sector in general, which is starting to explore beyond the most popular chains.
Arbitrum is a layer 2 solution on Ethereum, and it’s getting into the RWA (Real World Assets) trend that’s involving a bunch of different chains. This trend is one to watch for the next cycle.
Arbitrum Joins the Big Leagues
Arbitrum is probably the biggest winner here. It’s going to get a lot of buzz in financial media. Plus, the RWA world seems to be catching on that one of the main benefits of blockchain is being able to leverage different networks and their strengths.
The fund in question is a big deal—it’s got $420 million under management and is a pure money market fund. For now, it’s only available to professional investors. The fund puts at least 99.5% of its money into US bonds, REPOs, and cash.
It’s Franklin Templeton’s first big dive into blockchain, though they’ve also rolled out Bitcoin and Ethereum ETFs before.
RWA: A Game Between Chains and Layer 2s?
Looks like it might be, especially since Ethereum is still the dominant ecosystem for obvious reasons. It’s where the most liquidity is, and it’s probably the most reliable network for fund managers.
BlackRock, for instance, has already launched an Ethereum fund and might add more in the future. We discussed this in a recent YouTube video, highlighting how crucial the involvement of major intermediaries will be for the growth of this sector in crypto.
Conclusion
With Franklin Templeton now on Arbitrum, tokenized assets are picking up serious momentum. Arbitrum is proving its worth as a layer 2 for Ethereum, and the growing involvement of big financial players is a clear sign that this sector is gaining importance.
It’ll be exciting to see how competition between different chains and layer 2s plays out in the next cycle.
