Franklin Templeton has received approval from the Monetary Authority of Singapore (MAS) to launch the Franklin OnChain U.S. Dollar Short-Term Money Market Fund. This is said to be the first tokenised fund available to retail investors in the country.
The fund is structured under Franklin Templeton Investments VCC, a Variable Capital Company incorporated in August 2024.
Shares of the fund will be issued via Franklin Templeton’s blockchain-integrated transfer agency platform.
The minimum investment is set at US$20, aimed at improving accessibility to a broader base of investors.
The fund’s investment strategy mirrors that of the Luxembourg-registered Franklin U.S. Dollar Short-Term Money Market Fund, which manages US$1.76 billion in assets.
It invests primarily in high-quality, short-term USD-denominated securities issued by governments and companies globally, while minimising currency exposure.
The fund is managed by Templeton Asset Management Ltd, with Franklin Advisers Inc serving as sub-manager.
Franklin Templeton has been involved in digital asset initiatives since 2018 and is a participant in MAS’ Project Guardian, which explores asset tokenisation to enhance market liquidity and efficiency.
The firm previously launched a tokenised money market fund in the U.S. in 2021, which was the first U.S.-registered mutual fund to use a public blockchain for transaction processing and share ownership recording.
Tariq Ahmad, Head of APAC, Franklin Templeton, said,
“We are proud and excited to bring this first-of-its-kind tokenised money market fund to retail investors in Singapore.
The new fund marks a significant milestone in our commitment to harnessing the power of blockchain technology to lower the barriers to investing and deliver transformative products for investors in Asia-Pacific.”
Roger Bayston, EVP, Head of Digital Assets, Franklin Templeton, said,
“We believe that blockchain technology is fundamentally reshaping the financial services industry by enabling the evolution of traditional financial products and processes, and the new fund demonstrates the potential for increased interoperability in the financial system.
With rising investor interest in tokenised digital financial products, we are committed to leveraging our in-depth knowledge of digital asset ecosystems and disruptive technologies to bring more innovative solutions to the market.”
Featured image: Edited by Fintech News Singapore, based on image by tawatchai07 via Freepik
