Franklin Templeton launches tokenized U.S. dollar money market fund in Hong Kong
Hong Kong, Nov. 6 — Franklin Templeton has launched a tokenized U.S. dollar money market fund for professional investors in Hong Kong, marking another step in the asset manager’s expansion into digital assets across Asia.
The Franklin OnChain U.S. Government Money Fund is the first end-to-end tokenized fund structure from a global asset manager in Hong Kong, integrating issuance, distribution, and servicing directly on blockchain. The fund aims to offer income and capital preservation by investing in short-term U.S. government securities.
Initially available only to institutional and professional investors, the fund is registered in Luxembourg under a UCITS framework that allows it to be marketed across the European Union. It uses Franklin Templeton’s proprietary blockchain recordkeeping system.
Tariq Ahmad, Franklin Templeton’s head of Asia-Pacific, said the company plans to eventually offer a retail-ready tokenized fund, pending approval from Hong Kong’s Securities and Futures Commission (SFC).
Brian Chen, head of OSL Wealth Management — a regulated partner supporting the launch — said the initiative reflects how “Hong Kong is becoming an institutionally trusted hub for digital assets.”
The move follows the launch of ChinaAMC’s HKD Digital Money Market Fund in February, the first tokenized product by China Asset Management (Hong Kong).
Hong Kong pushes forward with tokenization
Hong Kong continues to strengthen its position as a leader in real-world asset (RWA) tokenization, supported by a clear regulatory framework that distinguishes it from mainland China.
The Hong Kong Monetary Authority (HKMA) has introduced several initiatives to advance asset tokenization, including the Project Ensemble sandbox, which tests how tokenized assets can be settled between banks using a wholesale central bank digital currency (wCBDC).
Other industry pilots — such as a collaboration between UBS, Chainlink, and DigiFT — are also exploring automated onchain fund tokenization and settlement.
In November, the HKMA detailed its broader tokenization roadmap under the Fintech 2030 strategy, which includes plans to issue tokenized government bonds, explore tokenized Exchange Fund papers, and expand the city’s e-HKD stablecoin project.
Featured image from: cointelegraph.com