Franklin Templeton Launches Tokenized U.S. Treasury Fund in Luxembourg
Franklin Templeton, a major global asset manager, announced the launch of its tokenized U.S. Treasury fund in Luxembourg, extending access to European institutional investors.
The Franklin OnChain U.S. Government Money Fund is claimed to be the first Luxembourg-domiciled fund fully tokenized and investing in U.S. government securities. This innovation enables shares in the fund to be recorded and transferred on the blockchain, enhancing efficiency, transparency, and security through Franklin Templeton’s proprietary blockchain-based transfer agency platform.
This fund is now available on the Stellar Lumens network (XLM) for institutional investors in multiple countries, including Austria, France, Germany, Italy, Liechtenstein, the Netherlands, Spain, and Switzerland, following regulatory approval from Luxembourg regulators in October. The U.S.-registered counterpart of the fund, launched in 2021, has attracted over $580 million in assets, but it’s limited to U.S.-based investors.
Tokenized U.S. Treasuries are leading efforts in real-world asset tokenization, having grown into a $4 billion asset class this year. Franklin Templeton was the first traditional financial institution to offer such a product and now holds the title of the third-largest tokenized treasury fund, following Hashnote’s USYC and BUIDL by BlackRock and Securitize.
Read more: Franklin Templeton Expands $594M Market Money Fund to Solana
Disclaimer: Parts of this article were generated with AI tools and reviewed by our editorial team for accuracy. See CoinDesk’s full AI Policy for more details.
Comments (0)