Franklin Templeton Launches Tokenized Money Market Fund in Hong Kong
Franklin Templeton has expanded its foray into blockchain technology with the launch of a new money market fund in Hong Kong, designed for professional investors. This initiative highlights the firm’s commitment to growing its digital asset offerings across Asia and driving innovation in tokenized finance.
The Franklin onchain U.S. Government Money Fund invests in short-term U.S. government securities, representing each share as a blockchain token. Franklin Templeton states this tokenized structure offers improvements in efficiency, transparency, and cost compared to traditional fund structures.
The launch is connected to Franklin Templeton’s involvement in Hong Kong’s Project Ensemble, a Hong Kong Monetary authority project exploring tokenized financial systems, and strengthens Hong Kong’s emerging role as a center for institutional digital asset innovation. Tariq ahmad, Head of APAC for Franklin Templeton, underscored the firm’s dedication to expanding tokenized investment options throughout the region.
Developed with partners HSBC and OSL, a Hong Kong-based cryptocurrency exchange, the fund – utilizing a token called gBENJI – successfully tested on-chain yield generation and integration with HSBC’s tokenized deposits. This integration facilitates continuous settlement and streamlined investor processes, marking notable progress towards a real-time, blockchain-based financial infrastructure.
Registered in Luxembourg under UCITS regulations, the fund benefits from robust investor protection and standardized fund practices across the EU. Franklin Templeton’s proprietary blockchain recordkeeping system manages the issuance,distribution,and servicing of shares directly on the blockchain.
Having pioneered blockchain finance since 2018 through its Benji Technology Platform and multiple tokenized fund launches, Franklin Templeton’s latest move demonstrates the increasing convergence of traditional asset management and blockchain technology, shaping the future of global finance.
