99.5% of Franklin OnChain Fund’s Assets Invested in Government Securities and Cash
Key Facts
The summary prospectus for the Franklin OnChain U.S. Government Money Fund, ticker FOBXX, states that at least 99.5% of its total assets are invested in government securities, cash and repurchase agreements fully collateralized by government securities or cash. The policy places the fund among money market products whose assets are backed by government and cash instruments, according to Franklin Templeton’s prospectus. The transfer agent maintains the official record of share ownership through a proprietary system integrated with blockchain. The system uses traditional book-entry features alongside one or more public networks. The prospectus says that recording shares on a blockchain does not affect the fund’s investments.
Shares recorded in this system remain under the transfer agent’s sole control, according to the prospectus. That means recording ownership on a public network does not by itself transfer authority over the register to shareholders or the network. The arrangement allows the transfer agent to correct errors and unauthorized transactions, while limiting the transferability of shares, as described in the system’s official materials. On the XRP Ledger, a multi-signature transaction requires approvals from a specified list of signers, whose signature weights must add up to the required threshold. This mechanism ties transaction validity to the account settings and its registered signer list.
Franklin Templeton, Ripple and DBS Group announced a memorandum of understanding on 18 September 2025 to develop trading and lending solutions using tokenized money market funds and the RLUSD stablecoin on the XRP Ledger. The announcement included the listing of the sgBENJI token, linked to Franklin OnChain U.S. Short-Term Money Market Fund, alongside the stablecoin on DBS Digital Exchange, enabling eligible clients to exchange the currency for fund tokens. Franklin Templeton said it would tokenize sgBENJI on the network, citing speed, efficiency and lower transaction costs among the reasons for its choice. The next phase announced by DBS is to explore using sgBENJI tokens as collateral for credit through repurchase agreements or third-party platforms. As the product expands to other networks, Franklin Templeton’s page showed BENJI on the Stellar network at a value of $605 million on 6 October 2026, according to RWA.xyz data.
Franklin Templeton’s activity in assets linked to the XRP Ledger extends to other products. On 24 November 2025, the company announced the launch of the Franklin XRP ETF on NYSE Arca under the ticker XRPZ. The company said the fund provides regulated exposure to XRP price movements. At the time of the announcement, it described the XRP Ledger as an open-source network for payments, transfers and asset tokenization, noting that it launched in 2012. These announcements place the money market fund and the XRP product on two distinct tracks in the company’s digital business: recording ownership of investment fund shares, and offering a product that tracks the price of a digital asset. The partnership announcement did not specify a timeline for completing its exploration of using sgBENJI tokens as credit collateral.