Key Information:

• Franklin Templeton has integrated Solana into its OnChain U.S. Government Money Market Fund (FOBXX).
• The fund boasts a market capitalization of $594 million, making it the third-largest tokenized money market fund.
• Interest in Solana has been increasing among tokenization issuers, although Ethereum remains the leading platform.

Overview of the Fund Expansion

Franklin Templeton has made the OnChain U.S. Government Money Market Fund (FOBXX) available on the Solana blockchain, indicating growing interest in decentralized finance.

The fund’s presence is also established on Ethereum, Coinbase’s Base, Aptos, and Avalanche. The announcement of this expansion was made recently.

Growth in the Tokenization Sector

Solana has become a popular choice for new tokens, particularly memecoins, and now represents over 90% of all new tokens listed on decentralized exchanges (DEX), according to a study by Pantera Capital. This is a significant rise from just 1% at the end of 2023.

“Even when innovation doesn’t start on Solana, it eventually finds its way there,” report authors Cosmo Jiang and Eric Wallach noted.

FOBXX began its operations in 2021 and currently sits behind Hashnote’s Short Duration Yield Coin (USYC) and BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

The sector on tokenization is rapidly expanding, and it is a multitrillion-dollar opportunity as more institutions transition their assets into the blockchain realm, according to various industry forecasts.

Solana’s Position in Tokenization

Despite Ethereum leading tokenization with a 52% market share valued at $3.8 billion, Solana’s growth within this space represents a strong interest from institutional players. Franklin Templeton’s move to Solana aligns with trends seen from other entities like Securitize, which recently expanded its offerings on Solana.