Franklin Templeton has recently been granted approval by the Luxembourg regulatory authority (CSSF) to introduce the very first fully tokenized UCITS fund on a public blockchain.
This groundbreaking fund will be the first of its kind for an asset manager based in Europe.
Franklin Templeton leads the way in fintech with blockchain
Founded in 1947 in New York, Franklin Templeton is a US-based company with a strong presence in Europe. Currently headquartered in California, the company manages over $1.6 trillion in assets.
Its subsidiary, Franklin Resources, is listed on the New York Stock Exchange under the ticker BEN and is actively involved in investment management across more than 150 countries.
Franklin Templeton’s mission is to assist clients in achieving better outcomes through their expertise in investment management, wealth management, and technological solutions. The company offers specialized services on a global scale, including fixed income, equity, alternative, and multi-asset solutions.
With over 1,500 investment professionals and offices in major financial markets worldwide, Franklin Templeton is a prominent player in the industry.
Additionally, their subsidiary Franklin Templeton Digital Assets Services (FTDAS) has been engaged in the digital asset ecosystem since 2018, focusing on developing technology solutions based on blockchain and crafting investment strategies in this burgeoning sector.
Breaking new ground: Franklin Templeton’s inaugural tokenized fund on blockchain
The on-chain fund will be bolstered by a robust digital assets ecosystem, aiming to unlock new benefits and possibilities for clients as the adoption of these technologies continues to grow.
FT Digital Assets is set to become the first asset manager in Europe to launch a tokenized fund on a public blockchain using internal capabilities and proprietary technologies.
The fund’s launch is anticipated in the upcoming months, with shares issued through Franklin’s proprietary platform enabled for blockchain transfer agency.
This initiative underscores Franklin Templeton’s belief in the potential of Web3 and digital technologies to reshape the asset management landscape.
The CSSF has granted approval for the market launch of this fully tokenized UCITS fund, marking a significant milestone for the company.
Notably, in April three years ago, Franklin Templeton introduced the first mutual fund registered in the US that utilized a public blockchain for processing transactions and recording share ownership—the Franklin OnChain U.S. Government Money Fund2.
Tokenization: unlocking a world of benefits
Tokenizing assets on blockchain offers numerous advantages, as the decentralized digital ledger ensures secure, transparent, immutable, and publicly verifiable transaction records.
Furthermore, it enables peer-to-peer transactions without intermediaries, ensuring that all data is permanently recorded and visible to all. In contrast, traditional centralized solutions are more susceptible to security breaches and involve greater administrative burdens.
Asset tokenization provides enhanced liquidity, making financial products more accessible to a broader audience, along with composability and transparency.
What others are saying
Sandy Kaul, Head of Digital Asset Advisory Services at Franklin Templeton, emphasized:
“We aim to lead the way in developing innovative solutions that cater to our clients’ needs for business growth, operational efficiency, and scalable best practices. Disruptive technology and innovation in financial services are reshaping the industry and altering the fundamental rules of attracting, protecting, and serving clients. We envision potential opportunities in the future to create additional tokenized financial products, including interoperability with other digital assets and native blockchain structures. We are dedicated to exploring these opportunities as part of our broader digital resource strategy.”
Roger Bayston, Head of Franklin Templeton Digital Assets, added:
“Since 2018, we have been actively engaged in and contributing to the digital asset ecosystem, witnessing firsthand the transformative impact of blockchain technology. With technological innovation advancing steadily, we collaborate closely with regulators globally to introduce innovative solutions to the market. Leveraging our profound understanding of blockchain ecosystems and proprietary technologies, we are well-equipped to introduce products that enhance understanding and accessibility of digital assets within the wider community.”
Matt Harrison, Head of Americas, Europe & UK at Franklin Templeton, concluded:
“This new fund signifies a pivotal step in our global commitment to leverage blockchain technology for clients outside the US. We maintain a steadfast focus on innovation and creating long-term value for our clients, equipping them with tools, services, and knowledge to make informed decisions. Through our proprietary solutions, we offer enhanced security, transparency, and efficiency, further solidifying our leadership in the rapidly evolving realm of digital assets.”