Franklin Templeton adds Solana to $512M government money fund

Franklin Templeton, which manages approximately $1.6 trillion in assets, has launched its OnChain U.S. Government Money Fund (FOBXX) on the Solana (CRYPTO:SOL) blockchain.

The financial services company announced the expansion on February 12, marking the addition of Solana to the list of blockchains supporting FOBXX.

FOBXX, which launched in 2021, invests nearly all of its assets in U.S. government securities, cash, and fully collateralised repurchase agreements.

As of January 31, 2025, the fund totaled $512 million in assets and had a seven-day effective yield of 4.2%.

According to Franklin Templeton, Solana’s speed, security, and censorship-resistant network make it ideal for on-chain operations.

The fund is now available on eight blockchains, including Ethereum (CRYPTO:ETH), Avalanche (CRYPTO:AVAX), Arbitrum (CRYPTO:ARB), Base, Polygon (CRYPTO:MATIC), Aptos (CRYPTO:APT), and Stellar (CRYPTO:XLM).

As of February 11, FOBXX's market cap was nearly $594 million.

Franklin Templeton has also registered the Franklin Solana Trust, indicating plans for a Solana ETF in the U.S.

The company has been active in the crypto space, launching Bitcoin(CRYPTO:BTC) and Ether ETFs in January and July 2024, respectively, and is seeking SEC approval for a Crypto Index ETF.

The expansion of FOBXX to Solana follows another tokenised institutional investment fund that recently debuted on the network, the Apollo Diversified Credit Securitize Fund.

Although Solana is known for meme coins, institutional interest in the blockchain is growing, with investments in decentralised applications rising 54% in Q3 2024 to $173 million.

At the time of reporting, the Solana (SOL) price was $197.81.