Franklin Templeton’s tokenized U.S. government money market fund is now live on BounceBit, the latest milestone in the arrival of real-world assets (RWA) into the crypto environment.
BounceBit confirmed the integration on August 5 through its BounceBit Prime product, making the Blockchain Capital and YZi Labs-backed platform a new destination for structured yield strategies.
Improving Capital Efficiency with Tokenized Assets
Under the integration, Franklin Templeton’s fund is collateral and settlement on BounceBit Prime’s platform. The move enhances capital efficiency since investors can not only hold the yield-bearing asset but also use it in yield-bearing strategies across exchange venues.
The tokenized fund offers a current yield of approximately 4.5%, offering double benefits to investors: a baseline yield from the fund itself as well as additional yield opportunity within the BounceBit ecosystem.
BounceBit stated:
This launch paves the way for what BB Prime will become: A venue for execution of tokenized RWA — backed by institutional-grade collateral and governed by programmable logic.”
Franklin Templeton’s Onchain Growth
Franklin Templeton launched the OnChain U.S. Government Money Fund in 2021, offering tokenized shares through the BENJI token. As of August 4, the fund is also supported by Anchorage Digital Bank and operates on Ethereum, Solana, Stellar, Avalanche, and VeChain.
The fund holds $692 million in assets, rendering it among the biggest onchain institutional products of its kind.
The Broader RWA Ecosystem
BounceBit is among a growing number of players introducing tokenized RWAs to broader accessibility. Some of the other big names in the space include BlackRock, Fidelity, Janus Henderson, and Guggenheim Treasury.
They are helping to grow the onchain market for a wide variety of assets, from U.S. Treasury debt to tokenized stocks, private credit, and corporate bonds.
BounceBit is looking to launch its tokenized stock product in the U.S., Europe, Hong Kong, and Japan. That puts it in direct competition with the integration of platforms like Robinhood, which launched tokenized U.S. stocks on Arbitrum in July, and eToro, which made a similar announcement as well.
Conclusion
The integration of Franklin Templeton’s tokenized fund into BounceBit represents a watershed for the growth of the RWA market. As more and more institutional-grade assets move onchain, platforms like BounceBit are positioning themselves at the leading edge of capital-efficient crypto investing.
