- Franklin Templeton launched a tokenized money market fund for retail investors in Singapore, with a minimum investment of $20.
- The Monetary Authority of Singapore authorized the fund, which uses blockchain technology for transfer and record-keeping.
- Franklin Templeton’s U.S. fund, FOBXX, has over $750 million issued and nearly 600 investors, making it the second largest tokenized fund after BlackRock‘s BUIDL.
- The Singapore fund’s portfolio matches the Luxembourg-registered Franklin U.S. Dollar Short-Term Money Market Fund, differing from the U.S. FOBXX fund in risk and disclosure practices.
- The Singapore fund gives less detailed portfolio transparency compared to the full disclosure offered by the U.S. fund.
Franklin Templeton has launched a tokenized money market fund for retail investors in Singapore, becoming the first to provide such access to retail clients in the country. The Monetary Authority of Singapore approved the company’s local subsidiary to offer the fund, which has a minimum investment requirement of $20.
This new product uses a blockchain-based transfer agency solution. Franklin Templeton describes it as improving transparency, security, accessibility, and efficiency. In the United States, Franklin Templeton’s FOBXX fund has more than $750 million issued, making it the country’s second largest tokenized fund after BlackRock’s BUIDL, which has a market capitalization close to $2.9 billion.
Unlike competing tokenized funds in Singapore, which focus on accredited investors, Franklin Templeton’s option is open to both retail and institutional clients. The company reported that the U.S. FOBXX fund has nearly 600 investors, compared to fewer than 70 for BlackRock’s institution-only BUIDL. According to Franklin Templeton, “greater transparency, security, accessibility and efficiency” are features enabled by its use of blockchain technology.
There are significant differences between the Singapore tokenized fund and its U.S. counterpart. The Singapore product will mirror the Luxembourg-based Franklin U.S. Dollar Short-Term Money Market Fund (Mdis), which manages $1.76 billion in assets. The Luxembourg fund holds a mix of AAA (21%), AA (62%), A (15%), and unrated (1%) securities, with a recent annual return of 4.77% and an average maturity of 24 days.
In contrast, the U.S.-based FOBXX fund invests only in government securities, all rated AAA, offers a recent annual return of 4.73%, and has a similar average maturity. This results in different risk and return profiles for investors.
Transparency standards also vary. The U.S. FOBXX fund publishes a full list of portfolio holdings, while the Luxembourg-based fund provides details only on its top ten holdings. In February, Franklin Templeton also introduced a separate Luxembourg tokenized fund focused solely on government-linked securities.
Other global asset managers, such as UBS and Wellington Management, offer tokenized funds in Singapore, but these products are limited to accredited investors.
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