Franklin Templeton launches first fully tokenised Luxembourg Ucits fund.
Franklin Templeton has launched the Franklin OnChain US Government Money Fund, marking the “first fully tokenised Ucits product domiciled in Luxembourg” available to institutional investors across Austria, France, Germany, Italy, Liechtenstein, Netherlands, Spain, and Switzerland.
The fund, which operates under the newly established Franklin Templeton OnChain Funds umbrella, is built on the Stellar public blockchain, using the asset manager’s proprietary blockchain-enabled transfer agency platform. According to the provider, this approach offers enhanced transparency, security, accuracy, and immediacy, leveraging the benefits of blockchain technology.
The fund’s objective is to provide a high level of current income while preserving capital and liquidity, maintaining a constant net asset value of USD 1.
To achieve this, the fund will invest in US government securities, including fixed, floating, and variable rate securities, as well as repurchase agreements fully collateralised by US government securities or cash.
Source: FUNDSTECH
