Singapore greenlights tokenized investment fund led by Franklin Templeton in the digital age
Franklin Templeton Launches First Tokenized Fund in Singapore
Franklin Templeton, one of the world's largest asset managers, has made a significant stride in the blockchain and Web3 industry by launching its first tokenized fund in Singapore. The $780 million Franklin OnChain US Dollar Short-Term Money Market Fund is based on an investment strategy in globally issued, US dollar-denominated money market instruments.
The launch of this fund marks a major institutional adoption of tokenized finance under Singapore's robust regulatory framework, bridging traditional asset management with blockchain innovation. The fund, which allows investments with as low as $20, is targeted at retail investors in Singapore.
The approval of Franklin Templeton's tokenized fund is part of a favorable regulatory context in Singapore that drives the adoption of innovative financial technologies. Singapore's clear and favorable regulation has made it a strategic hub for the development of tokenized products.
The fund will be managed through a proprietary platform integrated with blockchain technology acting as a transfer agent. This integration offers greater transparency, security, and operational efficiency. The tokenization process enables faster, more transparent, and secure transactions, as well as facilitating the fragmentation and accessibility of these products.
Franklin Templeton has been a pioneer in adopting blockchain technologies in the financial sector since 2018. The company launched the first registered mutual fund in the United States that uses blockchain to record ownership of its shares. This new tokenized fund in Singapore represents a significant step towards financial inclusion through blockchain technology.
The tokenization of real assets, such as bonds and money market securities, is experiencing rapid global growth. By integrating its BENJI tokenization platform with VeChain’s blockchain ecosystem, Franklin Templeton demonstrates how established financial institutions can leverage blockchain's transparency, efficiency, and real-time settlement capabilities while maintaining investor trust and operational security.
The launch of this tokenized fund positions Singapore as a nerve center for blockchain innovation and Web3. The multi-chain strategy spans several blockchains, including Stellar, Ethereum, and VeChain, reflecting a flexible approach to asset tokenization and positioning the company as a leader in the emerging real-world asset (RWA) space—a critical sector for the maturation of Web3 finance.
Moreover, the fund's integration with international initiatives like ArbitrumDAO’s treasury diversification program and Singapore’s Project Guardian initiative further signals growing collaboration between blockchain ecosystems and traditional finance institutions to standardize and scale tokenized asset markets.
In summary, Franklin Templeton’s tokenized fund launch in Singapore exemplifies a landmark moment for the Web3 industry, where mainstream asset managers adopt blockchain technology to deliver secure, compliant, and liquid tokenized assets, accelerating the adoption and infrastructural development of decentralized finance and tokenized real-world assets globally.
Read also:
- Elon Musk accused by Sam Altman of exploiting X for personal gain
- Tech tycoon Elon Musk alleges Apple is preferring OpenAI, sparking potential lawsuits contemplation
- China's Automotive Landscape: Toyota's Innovative Strategy in Self-Driving Vehicles
- Tech mogul Erik Bergman, founder of Great.com, contributes a million dollars to clean water initiatives in Africa.
