Franklin Templeton Launches Tokenized U.S. Treasury Fund in Luxembourg
Franklin Templeton has launched its tokenized U.S. Treasury fund in Luxembourg, targeting European institutional investors.
- The Franklin OnChain U.S. Government Money Fund is the first fully tokenized fund investing in U.S. government securities domiciled in Luxembourg.
- Shares are recorded and transferred on the blockchain using a proprietary platform for improved efficiency, transparency, and security.
- The fund operates on the Stellar Lumens network (XLM) and is available to institutional investors in several European countries following regulatory approval in October.
- The U.S.-registered version of the fund has gathered over $580 million since its 2021 launch and is limited to U.S.-based investors.
- Tokenized U.S. Treasuries represent a growing $4 billion asset class this year, with Franklin Templeton being a pioneer among traditional financial institutions.
- This fund ranks as the third largest tokenized treasury fund by assets under management.