Franklin Templeton has launched its first fully tokenised, Luxembourg-domiciled UCITS product.
The Franklin OnChain US Government Money Fund sits under its newly established Franklin Templeton OnChain Funds umbrella.
The launch comes after regulatory approval last October, from Luxembourg regulator Commission de Surveillance du Secteur Financier, allowing the investor to host the first fund of its kind in the jurisdiction.
Sandy Kaul, head of digital assets and industry advisory services at Franklin Templeton, said the approval would allow the firm to become a pioneer within digital assets.
“We want to be known as a leader in developing innovative solutions that align with the needs of our clients in terms of business growth, operational efficiency, and scalable best practices,” said Kaul.
“Disruptive technology and innovation in financial services is reshaping the industry and changing the fundamental rules for how to attract, secure, and serve clients.
“We believe that in the future, there may be opportunities to create other tokenised financial products, including interoperability with other digital assets and blockchain native facilities,” he added.
The fund is set to invest in US government securities, including floating, fixed, and variable rate, alongside repurchase agreements collateralised fully by US government securities or cash.
Its objective is to provide investors with a high level of current income as is consistent with the preservation of capital and liquidity, and will be available to institutional investors in Austria, France, Germany, Italy, Liechtenstein, Netherlands, Spain and Switzerland.
