Key Takeaways:
- Franklin Templeton launches its first tokenized UCITS money market fund in Hong Kong.
- The fund leverages blockchain for transparency, efficiency, and yield delivery.
- Part of Hong Kong’s Project Ensemble, advancing tokenized asset adoption.
- Future plans include retail tokenized funds, pending regulatory approval.
Franklin Templeton Expands Tokenized Fund Access in Hong Kong
Franklin Templeton has launched the Franklin OnChain U.S. Government Money Fund, marking the first Luxembourg-registered tokenized UCITS fund available to professional investors in Hong Kong. This milestone underscores the firm’s leadership in merging traditional asset management with blockchain innovation.
The fund leverages Franklin Templeton’s Benji Technology Platform, a proprietary blockchain-recordkeeping system that enhances transparency, security, and efficiency. It aims to provide a high level of current income while preserving capital and liquidity through investments in short-term U.S. government securities.
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A First-of-Its-Kind Tokenized Offering
This launch represents the first end-to-end tokenized solution by a global asset manager in Hong Kong—covering blockchain-native issuance, distribution, and servicing. Tariq Ahmad, Franklin Templeton’s Head of APAC, noted that the move reflects the firm’s commitment to “delivering innovative investment solutions that meet the evolving needs of modern investors.”
The company also revealed plans to pursue a retail-approved tokenized fund, subject to Hong Kong’s Securities and Futures Commission (SFC) approval, signaling its long-term ambition to democratize access to digital investment products.
Supporting Hong Kong’s Tokenization Vision
Franklin Templeton’s launch aligns with Project Ensemble, the Hong Kong Monetary Authority’s initiative to pilot tokenized deposits and assets. Collaborating with HSBC and OSL, the firm demonstrated how its onchain token, gBENJI, could deliver real-time yields while enabling faster, transparent fund settlements.
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HSBC’s Lewis Sun highlighted the synergy: “Tokenized deposits can enable near-instant, 24/7 settlements for tokenized money market funds—transforming fund operations and liquidity management.”
Driving Institutional Trust in Digital Assets
Hong Kong continues to position itself as a regulated hub for digital assets, supported by institutional-grade infrastructure and collaborative initiatives. Through its technology and partnerships, Franklin Templeton aims to expand tokenized investment access globally and strengthen Hong Kong’s role in shaping the future of digital finance.
