Cryptocurrency-friendly investment firm Franklin Templeton introduced a blockchain-based money market fund for professional investors in Hong Kong and said it is also working on a version for retail investors as it looks to expand its footprint in Asia.
The Franklin OnChain US Government Money Fund invests in short-term US government securities with shares represented as tokens. Franklin Templeton says the structure allows for faster transactions, better transparency and lower costs than traditional fund structures.
The move builds on the firm’s role in Hong Kong’s Project Ensemble, an initiative of the Hong Kong Monetary Authority exploring tokenized finance. It also helps strengthen the city as a growing hub for institutional digital assets.
“This launch demonstrates 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 on-chain returns and interact with HSBC’s tokenized deposits to enable round-the-clock settlement and smoother investor operations.
The Luxembourg-registered fund uses a proprietary blockchain registry system to issue, distribute and service fund shares directly on-chain. It is registered under EU regulations on undertakings for collective investment in transferable securities. UCITS regulates investment funds to provide a high level of investor protection and create a single, harmonized market for these funds across EU member states.
Franklin Templeton has been active in blockchain finance since 2018, launching several tokenized funds and developing its Benji Technology Platform, which supports the new Hong Kong product.
