Luxembourg, 19 February 2025 – Franklin Templeton one of the world’s largest global investment managers and a pioneer in digital assets technology is delighted to announce 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.
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 USD 1. It will seek to achieve this by investing in U.S. government securities, which may include fixed, floating and variable rate securities, as well as repurchase agreements collateralized fully by U.S. 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 Fund3,launched in April 2021, which represents the first U.S. registered mutual fund to use a public blockchain to process transactions and record share ownership.
For more information, please visit our Luxembourg website here.
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Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and approximately $1.6 trillion in assets under management as of 31 January 2025. For more information, please visit www.franklintempleton.lu and follow us on LinkedIn, X, and Facebook.
The Franklin OnChain U.S. Government Money Fund is a sub-fund of the Luxembourg-registered Franklin Templeton OnChain Funds (FTOCF). The fund is actively managed and qualifies as a short-term Public Debt Constant Net Asset Value Money Market Fund. The Fund has been duly authorised by the CSSF in accordance with the provisions of the MMFR. This Fund has not been rated by external credit rating agencies. The value of an investment in the Fund, in contrast to a deposit, may fluctuate. The Fund does not offer any capital guarantee or protection and you may not get back the amount invested. The Fund is subject to the following investment risks which are materially relevant. Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, sub-investment-grade securities. Debt securities risk: as interest rates rise debt securities will fall in value. Issuers of debt securities may fail to meet their regular interest and/or capital repayment obligations. All credit instruments therefore have potential for default. Higher yielding securities are more likely to default. Government securities: Government-issued debt securities are sensitive to changes in macro policy and associated interest rate trends, political and economic instability, social unrest and potentially default. Interest rates: Changes in interest rates may negatively affect the value of the fund. Typically, as interest rates rise, bond values fall. Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Such risk may be triggered by (but not limited to) unexpected events such as environmental disasters or pandemics. Reduced liquidity may have a negative impact on the price of the assets. Market risk: the risk of loss in value of securities traded on markets as prices of securities may be affected by factors such as economic, political, market, and issuer-specific changes. Money market instruments: There is a risk that issuers of money market instruments held by the fund may not be able to repay the investment or pay the interest due on it, leading to losses for the fund. Complete information on the risks of investing in the Fund are set out in the Fund’s prospectus.
The US-registered Franklin OnChain U.S. Government Fund launched in April 2021 for the US market, is not approved for distribution outside of the US.
