Franklin Templeton Introduces Tokenized U.S. Treasury Fund to European Market

Franklin Templeton, a prominent global asset manager, has expanded its tokenized U.S. Treasury fund to European institutional investors. The Franklin OnChain U.S. Government Money Fund, now domiciled in Luxembourg, is the first of its kind in the region to invest in U.S. government securities through full tokenization. This approach records and transfers fund shares on the blockchain, utilizing Franklin Templeton’s proprietary blockchain-based transfer agency platform to enhance efficiency, transparency, and security.

The fund is accessible via the Stellar Lumens (XLM) network to institutional investors in Austria, France, Germany, Italy, Liechtenstein, the Netherlands, Spain, and Switzerland. This follows regulatory approval granted by Luxembourg authorities in October. Since its initial launch in 2021, the U.S.-registered version of the fund has accumulated over $580 million in assets, though it remains exclusive to U.S. investors.

Tokenized U.S. Treasuries have become a significant component of the growing real-world asset tokenization market, which has expanded to a $4 billion asset class this year. Franklin Templeton pioneered this movement among traditional financial institutions and currently manages the third-largest tokenized treasury fund by assets, following Hashnote’s USYC and BUIDL, issued by BlackRock and Securitize.