Asset manager Franklin Templeton was the first incumbent to launch a tokenized money fund available to retail investors in the United States, and is now the first in Singapore, offering access for an investment as little as $20. Others such as UBS and Wellington Management have launched Singapore tokenized funds targeting accredited investors. The Monetary Authority of Singapore has given the Singapore Franklin Templeton subsidiary authorization to launch the Franklin OnChain U.S. Dollar Short-Term Money Market Fund.
Franklin has developed a blockchain-integrated transfer agency solution which will be used by the fund. The asset manager described it as offering “greater transparency, security, accessibility and efficiency.”
In the United States, Franklin’s FOBXX has reached an issuance of more than $750 million, the second largest tokenized fund after BlackRock’s BUIDL. While BUIDL’s market capitalization is almost $2.9 billion, two stablecoins account for $2.1 billion of that figure. BUILD is only available to institutions and hence has less than 70 investors, whereas Franklin caters to both institutional and retail investors with almost 600 FOBXX investors.
Difference between Singapore fund and FOBXX
While the Franklin Singapore fund will be tokenized and also cater to both sets of investors, it differs from its US fund in several key aspects. The Singapore fund portfolio will mirror the Luxembourg registered Franklin U.S. Dollar Short-Term Money Market Fund (Mdis) which has $1.76 billion in assets under management.
Mdis is a money market fund, whereas the US-based FOBXX fund only invests in government securities. Hence, there are different risks and returns.
| Mdis | FOBXX | |
| Portfolio credit rating | 21% AAA, 62.22% AA, 15.43% A, 1.35% unrated | 100% AAA |
| Recent annual return | 4.77% | 4.73% |
| Weighted avg maturity | 24.04 days | 24 days |
Transparency practices also differ between regions. The US fund provides complete portfolio disclosure with downloadable lists of all assets, while the Luxembourg-based fund (which the Singapore fund mirrors) only discloses its top ten holdings.
Meanwhile, in February Franklin Templeton also launched a tokenized fund in Luxembourg which invests only in government-linked securities.
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