Franklin Templeton is one of the most prolific asset managers in engaging with blockchain. It was the first incumbent to launch a tokenized money market fund, FOBXX, on a public blockchain back in 2021. Now it has launched a very similar fund, but registered in Luxembourg. The company says it is the first Luxembourg domiciled fully tokenized UCITS SICAV product, the Franklin OnChain U.S. Government Money Fund.
It received approval for the product last October, using its own internal transfer agent infrastructure, that’s enabled with blockchain. Since then, Luxembourg has finalized laws that make the jurisdiction even more attractive for tokenized funds.
The new fund will be available on the Stellar blockchain, as was FOBXX initially. However, since then the US domiciled fund has expanded to seven additional blockchains: Polygon, Aptos, Avalanche, Arbitrum, Ethereum, Solana, and Base. The US version is the third largest tokenized MMF with assets under management of $512 million.
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