Cryptocurrency-friendly investment firm Franklin Templeton has introduced a blockchain-based money-market fund for professional investors in Hong Kong. The firm is also developing a version for retail investors as part of its strategy to expand its footprint in Asia.

The new fund, named the Franklin OnChain U.S. Government Money Fund, invests in short-term U.S. government securities, with shares represented as tokens. According to Franklin Templeton, this structure enables faster transactions, improved transparency, and lower costs compared to traditional fund structures.

This move builds on Franklin Templeton’s involvement in Hong Kong’s Project Ensemble, an initiative led by the Hong Kong Monetary Authority that explores tokenized finance. The launch also supports Hong Kong’s growing position as a hub for institutional digital assets.

“This launch shows our commitment to expanding tokenized investment products in Asia,” said Tariq Ahmad, Franklin Templeton’s Head of APAC.

In partnership with HSBC, one of the world’s largest banks, and OSL, a Hong Kong-based cryptocurrency exchange, Franklin Templeton tested how the fund token, gBENJI, could deliver yield on-chain. The collaboration also explored interactions with HSBC’s tokenized deposits to enable around-the-clock settlement and smoother investor operations.

The Luxembourg-registered fund utilizes a proprietary blockchain recordkeeping system to issue, distribute, and service fund shares directly on-chain. It is registered under the European Union’s Undertakings for Collective Investment in Transferable Securities (UCITS) regulations. UCITS regulates investment funds to provide a high level of investor protection and to create a single, harmonized market for these funds across EU member states.

Franklin Templeton has been active in blockchain finance since 2018, having launched several tokenized funds and developed its Benji Technology Platform, which underpins the new Hong Kong product.
https://www.coindesk.com/business/2025/11/06/franklin-templeton-debuts-tokenized-money-market-fund-in-hong-kong