Franklin Templeton has announced that it has launched the new Franklin OnChain U.S. Government Money Fund, a Luxembourg-registered UCITS SICAV under its newly established Franklin Templeton OnChain Funds (FTOCF) umbrella following regulatory approval last October.
The new Fund will be available to institutional investors in Austria, France, Germany, Italy, Liechtenstein, Netherlands, Spain and Switzerland.
The firm writes that Franklin OnChain U.S. Government Money Fund represents the first Luxembourg domiciled fully tokenised UCITS product. It is launched on public blockchain Stellar, using the firm’s proprietary inhouse blockchain-enabled transfer agency platform, giving investors the benefits of enhanced transparency, security, accuracy and immediacy made possible by blockchain technology.
The new Fund’s objective is to provide investors with a high level of current income as is consistent with the preservation of capital and liquidity while seeking to maintain a constant Net Asset Value of USD1. It will seek to achieve this by investing in US government securities, which may include fixed, floating and variable rate securities, as well as repurchase agreements collateralised fully by US government securities or cash.
Franklin OnChain U.S. Government Money Fund will be co-managed by San Mateo-based Shawn Lyons, CFA and Boston-based Joanne Driscoll, CFA and Michael Lima, CFA. The investment team also manage the US-registered Franklin OnChain U.S. Government Money Fund, launched in April 2021, which represents the first US registered mutual fund to use a public blockchain to process transactions and record share ownership.
