Franklin Templeton Launches Tokenized U.S. Treasury Fund in Luxembourg
On Wednesday, Franklin Templeton, a prominent player in the global asset management arena, announced the launch of its groundbreaking tokenized U.S. Treasury fund in Luxembourg, aimed at enhancing access for European institutional investors.
The newly introduced Franklin OnChain U.S. Government Money Fund is touted as the first fully tokenized fund domiciled in Luxembourg that invests exclusively in U.S. government securities. This innovative approach means that shares of the fund will be recorded and transferred using blockchain technology, rather than relying on traditional transaction methods. Franklin Templeton utilizes its proprietary blockchain-based transfer agency platform to manage these transactions, which is designed to provide improved efficiency, transparency, and security.
Institutional investors from several European countries—including Austria, France, Germany, Italy, Liechtenstein, the Netherlands, Spain, and Switzerland—can now access the fund, following regulatory approval granted by Luxembourg authorities in October. The U.S.-registered version of this fund has already made significant strides, attracting over $580 million in assets since its launch in 2021, although it remains exclusive to U.S.-based investors, according to data from rwa.xyz.
Tokenized U.S. Treasuries have emerged as a key focus within the rapidly growing sector of real-world asset tokenization, evolving into a robust $4 billion asset class this year alone. Franklin Templeton has positioned itself as a pioneer among traditional financial institutions by launching such a product and now holds the distinction of being the third largest tokenized treasury fund by assets under management, following Hashnote’s USYC and BlackRock and Securitize’s BUIDL.
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