Franklin Templeton has recently made an exciting announcement regarding its OnChain U.S. Government Money Market Fund. The fund is now available for trading on Coinbase’s Base blockchain, marking a significant milestone as the first asset manager to build on a layer-2 blockchain.
With a market cap of $410 million, the OnChain U.S. Government Money Market Fund is not only available on Base but also on five other blockchains, including Stellar which serves as the primary network. This move by Franklin Templeton demonstrates a clear commitment to embracing blockchain technology and providing more options for investors.
The decision to launch the fund on Base is a strategic one, as it offers faster and cheaper transactions compared to the base Ethereum blockchain. This makes it an attractive option for financial institutions like Franklin Templeton looking to leverage onchain technology to modernize the financial system.
Coinbase’s layer-2 blockchain, Base, was launched in 2022 and has quickly gained popularity within the ecosystem. It currently boasts over $8 billion in total value locked (TVL), surpassing some of its more established competitors. This growth is a testament to the increasing demand for efficient and cost-effective blockchain solutions.
Anthony Bassili, head of tokenization at Coinbase, expressed his excitement about Franklin Templeton’s decision to launch on Base, highlighting it as a positive sign for both investors and issuers. This move is indicative of the growing interest and adoption of blockchain technology within the financial industry.
Overall, Franklin Templeton’s launch of the OnChain U.S. Government Money Market Fund on Base represents a significant development in the world of asset management and blockchain technology. It sets a precedent for other asset managers to explore the opportunities offered by layer-2 blockchains and paves the way for further innovation in the space.
