Franklin Templeton has received regulatory approval from Luxembourg’s financial regulatory authority, Commission de Surveillance du Secteur Financier (CSSF), to launch Europe’s first fully tokenised Ucits fund on a public blockchain.
Leveraging Franklin’s proprietary blockchain-enabled transfer agency platform, the fund aims to enhance transparency, security, accuracy, and transaction immediacy for investors. Expected to launch within the coming months, this Ucits fund will be distributed across Europe, pending additional regulatory approvals.
Franklin Templeton’s Sandy Kaul, head of digital assets and industry advisory services, said: “We want to be known as a leader in developing innovative solutions that align with the needs of our clients in terms of business growth, operational efficiency, and scalable best practices. Disruptive technology and innovation in financial services are reshaping the industry and changing the fundamental rules for how to attract, secure, and serve clients. We believe that in the future, there may be opportunities to create other tokenised financial products, including interoperability with other digital assets and blockchain native facilities.”
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Blockchain, a decentralised digital ledger, offers a secure, transparent, and immutable record of transactions, enabling peer-to-peer transactions without intermediaries. Unlike traditional databases, blockchain enhances security and reduces administrative burdens, an appealing prospect in the financial services industry where data integrity and security are paramount.
Roger Bayston, EVP, head of digital assets, Franklin Templeton, said: “As technological innovation continues at pace, we continue to work closely with regulators around the world to introduce innovative solutions to the marketplace. Leveraging our in-depth knowledge of blockchain ecosystems and proprietary technologies, we are well positioned to introduce products that serve to further the understanding and accessibility of digital assets within the broader community.”
By integrating blockchain technology into traditional financial products, the firm aims to bridge traditional asset management with transactional capabilities, potentially transforming how investment products operate in the digital age.
Matt Harrison, head of Americas (ex-US), Europe & UK at Franklin Templeton, added: “This new fund will mark a pivotal step in our global commitment to leverage blockchain technology for clients beyond the US.”
