Franklin Templeton’s Tokenized Treasury Fund Now Available in Europe

Franklin Templeton, a global asset management firm, has launched its tokenized U.S. Treasury fund in Luxembourg, opening up blockchain-powered investment opportunities for institutional investors across Europe.

A First for Luxembourg: Blockchain-Based U.S. Treasury Fund

The Franklin OnChain U.S. Government Money Fund is now the first fully tokenized Luxembourg-based fund focused on U.S. government securities. According to the official press release, the fund records and transfers shares on the blockchain using Franklin Templeton’s platform, improving efficiency, security, and transparency.

Institutional Investors Across Europe Gain Access

Built on the Stellar (XLM) network, the fund is now available to institutional investors in eight European countries, including Austria, France, Germany, and Italy. Regulatory approval was granted in October, clearing the way for its expansion.

In the U.S., Franklin Templeton’s tokenized Treasury fund has grown to over $580 million in assets since launching in 2021. However, it remains exclusive to U.S. investors, according to RWA.xyz data.

Tokenized U.S. Treasuries Are Gaining Traction

This expansion highlights the increasing role of blockchain in traditional finance. By using tokenization, Franklin Templeton aims to make investing in U.S. Treasuries more transparent and efficient.

Tokenized U.S. Treasuries have seen significant growth, with the market reaching $4 billion this year. Franklin Templeton was the first major financial firm to introduce such a fund and is now the third-largest issuer in this space, following Hashnote’s USYC and BlackRock’s BUIDL.

Franklin Templeton Expands to Solana

Recently, Franklin Templeton announced that its tokenized Treasury fund would also be available on Solana. This follows the registration of the Franklin Solana Trust in Delaware.

The Franklin OnChain U.S. Government Money Fund (FOBXX) now operates on eight blockchain networks, adding Solana to its existing integrations with Stellar, Aptos, Avalanche, Arbitrum, Polygon, Base, and Ethereum.

With tokenized Treasuries on the rise, the future of fixed-income investing may look very different from today.