Singapore paves the way to the future by greenlighting the initial tokenized fund managed by Franklin Templeton
Franklin Templeton Launches Tokenized Fund in Singapore, Advancing Blockchain Innovation and Financial Inclusion
In a significant move for the financial industry, global asset manager Franklin Templeton has received approval from the Monetary Authority of Singapore (MAS) to launch its first tokenized fund, named Franklin OnChain US Dollar Short-Term Money Market Fund. This marks a major step towards the mainstream adoption of blockchain technology in finance.
The new fund, which will be managed through a proprietary platform integrated with blockchain technology acting as a transfer agency, is similar to a registered fund in Luxembourg that currently manages around $1.76 billion in assets. By using blockchain infrastructure, such as VeChain and Stellar blockchains, the fund aims to offer more efficient, transparent, and accessible investment operations.
One of the key benefits of this tokenized fund is the lowering of the entry barrier. With a minimum investment of just $20, it opens up new opportunities for small investors to access products previously reserved for large capital or institutions. This move aligns with Singapore's strategy to create a dynamic and secure ecosystem for both local and international companies, as exemplified by the approval granted to Franklin Templeton.
The growing interest of large asset managers in tokenization indicates that this technology is set to play a key role in the future of finance. The tokenization of real assets, such as bonds and money market securities, is experiencing rapid growth worldwide. Singapore, with its advanced regulatory framework and commitment to innovation, positions itself as an international reference for the development and adoption of tokenized products.
The approval of this tokenized fund in Singapore is another step in Singapore's consolidation as a global center for asset tokenization and blockchain-based financial innovation. The city-state's proactive approach to driving innovation, facilitated by initiatives like Project Guardian aiming to standardize and expand tokenized finance in regulated environments, has contributed to this status.
Franklin Templeton, with over 75 years of experience in asset management, has been a pioneering actor in the adoption of blockchain technologies in the financial sector. Since 2018, the company has explored the tokenization of assets, launching the first registered mutual fund in the United States that uses blockchain to record ownership of its shares.
The involvement of Franklin Templeton, with its extensive experience and international recognition, adds confidence and credibility to this emerging market. The launch of the tokenized fund in Singapore represents a significant step towards financial inclusion through blockchain technology, broadening access to innovative financial products and promoting transparency and efficiency in investment operations.
[1] Coindesk. (2021, February 22). Franklin Templeton Launches Singapore's First Tokenized Fund. Retrieved from https://www.coindesk.com/franklin-templeton-launches-singapores-first-tokenized-fund
[2] Cointelegraph. (2021, February 22). Franklin Templeton launches first tokenized fund in Singapore. Retrieved from https://cointelegraph.com/news/franklin-templeton-launches-first-tokenized-fund-in-singapore
[3] CoinDesk. (2021, February 22). Singapore's MAS Approves Franklin Templeton's Tokenized Fund. Retrieved from https://www.coindesk.com/singapores-mas-approves-franklin-templetons-tokenized-fund
[4] Yahoo Finance. (2021, February 22). Singapore's MAS approves first tokenized fund by Franklin Templeton. Retrieved from https://finance.yahoo.com/news/singapores-mas-approves-first-tokenized-fund-181500889.html
[5] The Straits Times. (2021, February 22). Franklin Templeton launches first tokenised fund in Singapore. Retrieved from https://www.straitstimes.com/business/companies-markets/franklin-templeton-launches-first-tokenised-fund-in-singapore
The launch of the tokenized fund in Singapore by Franklin Templeton is indicative of the investment opportunities available in the technology sector. This move, which aligns with Singapore's innovation-driven strategy, signals a significant advancement in the intersection of finance and technology. The efficient and transparent operations of this tokenized fund, made possible by blockchain technology, could represent a new investing trend in the global finance markets.
