Launches Singapore-based tokenized money market fund by Franklin Templeton
Franklin Templeton, a global investment firm, has made a significant move by launching a tokenized money fund in Singapore. This new offering marks one of the first tokenized funds accessible to retail investors under Singapore's regulatory regime, which includes stringent anti-money laundering (AML) and compliance measures tailored for a multi-jurisdictional environment.
In contrast, Franklin's FOBXX fund in the United States is an SEC-registered money market fund primarily targeting institutional investors. It is designed as a stable-value fund backed by U.S. Treasury assets, complying with U.S. investment and custody regulations.
Differences in Jurisdiction and Regulatory Framework
The Singapore tokenized money market fund is notable for its focus on retail investor accessibility under Singapore's regulatory framework. Platforms integrating KYC/AML and permissioned blockchains support compliance while maintaining investor inclusion.
On the other hand, the FOBXX fund focuses on institutional-grade clients, offering enhanced liquidity, peer-to-peer transfer on public blockchains, and utility such as USDC stablecoin conversion to fund purchases. Future plans may enable secondary market trading and collateral mobility, appealing to advanced treasury and liquidity management needs of institutions.
Differences in Investor Access and Use Cases
The Singapore offering broadens access to tokenized assets for retail investors, suggesting a focus on wider market participation. The FOBXX fund, however, caters to institutional investors, offering features such as USDC stablecoin conversion and potential secondary market trading.
Differences in Blockchain Networks and Technology
The FOBXX fund's BENJI tokens have been deployed initially on multiple blockchains—Stellar, Ethereum, Solana—and more recently on VeChain for cost-effective real-world asset infrastructure and Singapore regulatory approvals. The Singapore tokenized fund likely incorporates permissioned or hybrid blockchain architectures optimized for regulatory compliance and retail investor access.
Authorization and Partnerships
The Monetary Authority of Singapore has given authorization to the Singapore Franklin Templeton subsidiary to launch the Franklin OnChain U.S. Dollar Short-Term Money Market Fund. UBS and Wellington Management have also launched Singapore tokenized funds targeting accredited investors.
In summary, Franklin Templeton’s Singapore tokenized money market fund emphasizes retail investor accessibility under Singapore's regulatory framework with strong compliance mechanisms and is among the first of its kind there. Meanwhile, the FOBXX fund in the U.S. is an institutional-grade, SEC-registered tokenized money market fund leveraging multiple public blockchains for liquidity, custody, and enhanced trading utilities, focusing on institutional treasury management.
- The Singapore tokenized money market fund, unlike the FOBXX fund, prioritizes retail investor access under the Singaporean regulatory framework.
- While the FOBXX fund utilizes multiple public blockchains for liquidity, custody, and enhanced trading utilities, the Singapore tokenized fund likely employs permissioned or hybrid blockchains for regulatory compliance and retail investor access.
- According to the Monetary Authority of Singapore, the Singapore subsidiary of Franklin Templeton has been authorized to launch the Singapore Franklin Templeton tokenized money market fund.
- UBS and Wellington Management have also introduced Singapore-based tokenized funds for accredited investors.
