Franklin Templeton Brings Tokenized Money Market Fund to Singapore

Franklin Templeton, a global investment company, has received approval from the Monetary Authority of Singapore (MAS) to launch a new tokenized money market fund called Franklin OnChain U.S. Dollar Short-Term Money Market Fund. 

It is the first in Singapore to open to regular investors, not big institutions. This launch is not just a new investment product. It represents a larger shift in how traditional financial tools are being reshaped by blockchain technology.

Franklin Templeton Uses Blockchain to Make Investing Easier

According to the announcement, Franklin Templeton’s new fund is built on the company’s blockchain-powered platform. The platform is designed to improve security, increase transparency and efficiency, and make it easier to track investments. 

What makes this fund stand out is the low entry point. Retail investors and people in Singapore can start investing with just $20. This is a bold shift from similar products usually reserved for wealthy individuals and institutions. 

Singapore Has A Clear and Supportive Regulatory Environment

Singapore has become a key hub for digital asset innovation due to its clear rules for digital finance. The country’s crypto adoption rate is 11.05%, much higher than in many parts of the world. 

The MAS is making efforts to improve its policies to match global standards. The agency recently introduced the Payment Services Act into its regulations. This act helps manage digital payment tokens while ensuring companies follow strong anti-money laundering (AML) rules. It balances the need for consumer protection with room for technological growth. 

The MAS has also proposed changes to expand its regulatory reach to cover more digital token service providers. This is to prevent further illegal activities in the country. These clear and flexible rules have attracted big companies like Franklin Templeton to choose Singapore to launch their blockchain projects.

Tokenization Is Gaining More Grounds 

The Franklin OnChain fund is part of a bigger trend in finance called Real-Asset Tokenization. This process brings real-world financial assets onto the blockchain. Experts recently predicted that the value of tokenized assets could grow from $0.6 trillion in 2025 to $18.9 trillion by 2033, as more companies enter this sector. 

Few days ago, VanEck launched VBILL, a tokenized U.S. Treasury fund that is only available to institutional investors on many blockchain platforms. However, unlike VanEck, whose fund requires a minimum investment of $100,000 to $1 million, Franklin Templeton is reaching for a much wider audience with its $20 threshold.

Notably, Franklin Templeton is not new to the blockchain space. In 2021, it launched the first U.S. mutual fund using blockchain technology. The company manages over $1.4 trillion and works in more than 30 countries, giving it the global reach to support its innovations.