Franklin Templeton’s tokenized money market fund expands to BounceBit

BounceBit has added support for Franklin Templeton’s tokenized money market fund, with the integration targeted at bringing structured yield strategies to investors.

Summary

• BounceBit has added Franklin Templeton’s money market fund to its BounceBit Prime platform.
• Investors can leverage the integration to access structured yield strategies.

BounceBit announced its integration with asset manager Franklin Templeton on August 5, noting that the firm’s tokenized money market fund is now accessible via the Blockchain Capital and YZi Labs-backed platform’s BounceBit Prime product.

Adding Franklin Templeton’s money market fund to BB Prime makes  BounceBit the go-to platform for structured yield in the real-world assets market.

What does this mean?

BounceBit says the money market fund will act as both collateral and settlement on its platform, with the move aimed at making investing in the RWA ecosystem more capital-efficient than passive holdings.

In this case, traders can benefit from both the exposure to the underlying RWA yield of approximately 4.5% from Franklin Templeton’s fund and the yield opportunities that come with the asset’s use on exchange venues.

RWA market expansion

Franklin Templeton launched its tokenized U.S. government fund in 2021, with BENJI representing shares of the $692 million OnChain U.S. Government Money Fund. 

The fund, which Franklin Templeton announced on Aug. 4 that it is now supported by crypto-friendly Anchorage Digital Bank, is live onchain across Ethereum, Solana, Stellar and Avalanche. Franklin has also expanded its BENJI token to VeChain.

Other major players in the tokenized assets market include BlackRock, Fidelity Investments, Janus Henderson and Guggenheim Treasury. U.S. Treasury debt, tokenized stocks, private credit and corporate bonds are some of the RWA assets getting increased adoption onchain.

BounceBit plans to be a major part of the RWA market with tokenized stock products targeted for the United States, Europe, Hong Kong and Japan.

Robinhood unveiled its new tokenized stocks platform on Arbitrum in July, with investors across the 30 European Union and European Economic Area able to access more than 200 tokenized U.S stocks and exchange-traded fund. eToro has also announced a similar initiative.