Franklin Templeton has launched the first fully tokenized U.S. Treasury fund registered in Luxembourg, available on the Stellar network for European institutional investors. The fund, Franklin OnChain U.S. Government Money Fund, mirrors its U.S. version which has attracted over $580 million since 2021. It aims to provide enhanced efficiency, transparency, and security through blockchain technology.
Franklin Templeton announced the launch of its Luxembourg-domiciled Franklin OnChain U.S. Government Money Fund, the first fully tokenized U.S. Treasury fund registered there, expanding access to institutional investors in eight European countries including Austria, France, Germany, Italy, Liechtenstein, the Netherlands, Spain, and Switzerland. Shares are recorded and transferred on the Stellar blockchain using the firm's proprietary transfer agency platform for improved efficiency, transparency, and security. The U.S.-registered version of the fund has amassed over $580 million in assets since its 2021 debut and is limited to U.S. investors. This move follows regulatory approval from Luxembourg authorities in October and positions Franklin Templeton as a pioneer in tokenized U.S. Treasuries, now a $4 billion asset class. The fund ranks as the third largest tokenized treasury fund by AUM.
