Franklin Templeton has expanded its Franklin OnChain U.S. Government Money Fund (FOBXX) to the Arbitrum network, bringing its tokenized money market product to an Ethereum Layer 2 after earlier deployments on Stellar and Polygon. The fund is represented onchain by the BENJI token, where each token corresponds to one share of FOBXX, a U.S.-registered government money market mutual fund that invests at least 99.5% of its assets in U.S. government securities, cash, and fully collateralized repurchase agreements. FOBXX was originally launched in 2021 and is notable for being the first U.S.-registered mutual fund to use a public blockchain as its transaction and shareholder record system. Adding Arbitrum extends Franklin Templeton’s multi-chain tokenization strategy into Ethereum’s Layer 2 ecosystem, where lower fees and faster settlement are designed to make onchain cash management more practical for both institutional and crypto-native users. The BENJI token operates under an allowlist model, meaning only KYC/AML-approved wallets can hold and transfer it, preserving regulatory controls while enabling 24/7 peer-to-peer transfers and automated yield distribution directly to wallets in the form of additional tokens. The move matters as another step in the convergence of traditional regulated money market funds with DeFi infrastructure, positioning tokenized government money funds as a potential building block for onchain treasury management, trading collateral, and stablecoin reserve strategies on Ethereum-compatible networks such as Arbitrum.

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