Bold Step Toward the Future of Finance
In a move marking the convergence of traditional finance and blockchain technology, Franklin Templeton has won regulatory approval to launch Luxembourg’s first tokenised UCITS fund.
This pioneering move, greenlit by the Commission de Surveillance du Secteur Financier (CSSF), promises to transform how investors access and engage with financial products across Europe.
Scheduled for rollout in the coming months, the fund will utilise Franklin Templeton’s blockchain-based transfer agency platform to manage share issuance.
The platform brings a range of benefits to investors—enhancing transparency, improving security, and streamlining operations in ways that traditional systems can’t match.
Fundamental shift
This latest development represents more than a new fund; it’s a shift in finance’s evolution.
Sandy Kaul, head of digital assets and industry advisory at Franklin Templeton, says the industry is on the brink of change. “Disruptive technology and innovation in financial services are reshaping the industry and changing the fundamental rules for how to attract, secure, and serve clients,” says Kaul.
She hints at an even bigger future, one where tokenised assets interoperate across various digital asset ecosystems.
Not the first rodeo
This isn’t Franklin Templeton’s first foray into blockchain. Back in 2021, the firm debuted the Franklin OnChain U.S. Government Money Fund, the first U.S.-registered mutual fund to employ a public blockchain for both transaction processing and share ownership.
With this Luxembourg-based UCITS fund, they’re pushing the envelope again, bringing tokenised funds a step closer to mainstream acceptance.
Industry-wide, the momentum behind tokenisation is building. Just last year, Backed Finance launched the bCSPX, a tokenised S&P 500 ETF available as an ERC-20 token on Ethereum.
Out of the fringes
Meanwhile, the UK’s Financial Conduct Authority recently greenlit crypto listings on UK exchanges, offering professional investors access to blockchain-based financial products. Together, these moves signal that the tokenised economy is no longer on the fringe but poised to become a core part of the financial landscape.
Franklin Templeton’s vision signals a future where blockchain technology is fundamental to asset management, not merely a niche offering. The road ahead is ripe for innovation—and with Franklin Templeton leading the way, Europe may soon see an influx of tokenised financial products catering to a new generation of investors.
