70 year old NY giant Franklin Templeton has launched their substantial US$410 US Government Money Market Fund (FOBXX) on Coinbase's Base Blockchain, extending the fund beyond the other 5 chains which were offering the fund (Arbtirum, Polygon, Avalanche, Aptos and Stellar. This is the first fund of this kind to launch on Base.
Base was launched in 2022 as a Coinbase operated layer 2 which has leveraged the Coinbase brand to become one of the fastest growing layer 2 chains with over US$8B in TVL. Layer 2 chains have been growing in popularity for application deployment as they the fees and congestion of of Layer 1 chains like Ethereum (which was once famously nearly brought to a halt by Crypto Kitties' popularity and which still has a transaction bottleneck) by rolling up transactions and writing a single record to the layer 1 chain.
This approach of having greater speed and lower costs has not been overlooked by the traditional finance industry, with more than half of the Fortune500 actively exploring or looking to web3 options, with layer 2 integrations being top of the list.
CoinTelegraph reported that Anthony Bassili, head of tokenisation at Coinbase said:
Financial institutions like Franklin Templeton are increasingly taking advantage of fast, low-cost onchain technology to modernize the financial system
With more and more real world assets moving towards blockchain systems and crypto ETFs continuing to grow, it looks increasingly like the mainstream adoption of blockchain technology will be more likely to take off in 2025 than in prior years.
The only question will be how much of it's original libertarian roots will remain as the traditional end of town keeps arriving.
By Michael Bacina
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