Franklin Templeton, a leading global asset manager, announced on Wednesday the launch of its tokenized U.S. Treasury fund in Luxembourg, broadening access for institutional investors across Europe.
Notably, the Franklin OnChain U.S. Government Money Fund is the first fully tokenized Luxembourg-based fund investing in U.S. government securities, as per the press release. This would mean that Shares in the fund are recorded and transferred on the blockchain using Franklin Templeton’s platform, improving efficiency, transparency, and security.
The fund operates on the Stellar XLM network and is available to institutional investors in eight European countries, including Austria, France, Germany and Italy, following regulatory approval in October. Notably, the U.S. version of the fund, launched in 2021, has gained over $580 million in assets but is only available to U.S. investors, according to rwa.xyz data.
This launch gives institutional investors in eight European countries access to a more efficient and transparent investment option. By using blockchain, it modernizes transactions and emphasizes the growing role of tokenization in finance. As real-world asset tokenization rises, it’s clear that traditional finance and crypto are merging.
Tokenized U.S. Treasuries are leading the charge in real-world asset tokenization, growing into a $4 billion market this year. Franklin Templeton was the first major financial institution to launch such a product, making it the third-largest tokenized treasury fund by assets, Hashnote’s USYC and BUIDL, issued by BlackRock and Securitize.
