Franklin Templeton has unveiled Europe’s first blockchain-based government money fund, signaling a significant advancement in the digitalization of traditional finance. The firm introduced the Franklin OnChain U.S. Government Money Fund, a Luxembourg-registered UCITS SICAV product, in February 2025.
This fund is the first fully tokenized UCITS product domiciled in Luxembourg and will be available to institutional investors across eight European countries: Austria, France, Germany, Italy, Liechtenstein, Netherlands, Spain, and Switzerland.
Built on the Stellar public blockchain, the fund leverages Franklin Templeton’s proprietary blockchain-enabled transfer agency platform. This technological integration aims to provide investors with greater transparency in their transactions while maintaining robust security.
The fund’s primary objective is to generate high current income while preserving capital and maintaining liquidity. It targets a constant Net Asset Value of USD 1, a common objective for money market funds seeking to provide stability to investors.
To achieve these goals, the fund will invest in a variety of U.S. government securities, including fixed-rate, floating-rate, and variable-rate securities. The fund may also engage in repurchase agreements fully collateralized by U.S. government securities or cash.
The fund’s management team comprises experienced professionals from various Franklin Templeton locations. Shawn Lyons, CFA, based in San Mateo, will co-manage the fund with Boston-based team members Joanne Driscoll, CFA, and Michael Lima, CFA.
This same management team currently oversees the U.S.-registered version of the fund, launched in April 2021. That fund was the first U.S. registered mutual fund to use a public blockchain for transaction processing and share ownership recording.
The European launch follows regulatory approval received in October 2024, establishing the fund under the newly created Franklin Templeton OnChain Funds umbrella structure.
Blockchain Integration and Benefits
The fund’s use of blockchain technology enables immediate transaction recording and verification, providing real-time visibility into fund activities and ownership transfers.
The platform incorporates multiple security layers to protect investor assets and information, integrated into both the blockchain infrastructure and the transfer agency platform.
Franklin Templeton’s expansion into blockchain-based funds in Europe builds upon its experience with similar products in the U.S. market. The firm has developed expertise in combining traditional fund management with blockchain technology.
The fund’s structure facilitates efficient processing of subscriptions and redemptions. The blockchain-based system can handle these transactions with automated verification and recording.
Institutional investors will have access to detailed transaction records through the blockchain platform, enabling them to track their investments and independently verify transactions.
The fund operates within the established UCITS framework, ensuring compliance with European regulatory requirements while incorporating blockchain technology. This combination provides institutional investors with a regulated investment vehicle that leverages modern technology.
