Franklin Templeton Debuts Tokenized Money Market Fund in Hong Kong
Franklin Templeton has launched the Franklin Templeton Tokenized Money Market Fund Hong Kong, a Luxembourg-registered USD UCITS fund whose shares are issued as on-chain tokens. The fund is open to professional investors, marking a significant step in integrating traditional finance with blockchain-based infrastructure.
This initiative strengthens Franklin Templeton’s Asia strategy and builds on earlier tokenization pilots involving HSBC tokenized deposits and OSL. It also aligns with Hong Kong’s broader digital asset development under the HKMA’s Project Ensemble, which promotes the use of tokenized instruments and interoperable settlement models. Through this launch, Franklin Templeton demonstrates how regulated tokenized funds can enhance transparency, efficiency, and investor access while positioning itself as a frontrunner in the region’s expanding digital asset ecosystem.
What is the Franklin Templeton tokenized money market fund Hong Kong?
The offering is the Franklin OnChain U.S. Government Money Fund, investing in short-term U.S. government securities while issuing, distributing, and servicing shares directly on-chain (token: gBENJI). Franklin Templeton says this enables faster transactions, improved transparency and potentially lower costs compared with traditional structures. The product is registered in Luxembourg under UCITS and targeted initially at professional investors in Hong Kong.
Availability of the Franklin Templeton tokenized money market fund Hong Kong
At launch, access is limited to institutional/professional investors under Hong Kong rules. Franklin Templeton’s APAC head Tariq Ahmad said the firm aims to offer a retail-approved tokenized fund pending SFC approval, signaling a broader regional push.
How the tokenization stack works
Franklin Templeton’s Benji Technology Platform provides proprietary blockchain-integrated recordkeeping to issue and service shares natively on-chain. In sandbox testing, the gBENJI fund token interacted with HSBC’s Tokenised Deposit Service (TDS) to demonstrate around-the-clock settlement and operational flows with OSL. This aligns with HKMA’s Project Ensemble initiative to standardize interoperability across tokenized money and assets. Hong Kong Monetary Authority+3Fund Selector Asia+3HSBC+3
Why Hong Kong?
Hong Kong’s central bank launched Project Ensemble and a dedicated Sandbox to trial tokenized deposits and asset settlement, with a near-term pilot for “real-value transactions.” This policy backdrop, combined with bank-led tokenized deposits, makes Hong Kong a key hub for institutional digital assets.
Benefits and risks for professional investors
Benefits
atomic/instant settlement (especially when paired with tokenized deposits), on-chain transparency, potential cost and operational efficiencies, and 24/7 flows.
Risks
regulatory changes, smart-contract/operational risks, and liquidity or settlement dependencies on participating institutions and networks.
Context & Analysis
Tokenized money funds have emerged as a pragmatic bridge between TradFi and on-chain rails. By pairing a regulated UCITS structure with bank-issued tokenized deposits, this launch operationalizes near-instant cash management while keeping assets within familiar regulatory perimeters. The next milestone is retail access dependent on Hong Kong’s evolving guidance and SFC approvals.
Conclusion
Franklin Templeton’s Hong Kong debut marks a key expansion of institutional-grade tokenized cash products in Asia, highlighting the growing convergence between asset-backed tokens and bank-issued tokenized money. The launch reinforces Hong Kong’s position as a regional hub for regulated blockchain finance.
Attention now turns to how the Securities and Futures Commission (SFC) will approach potential retail access and how more banks may join tokenized deposit initiatives. Upcoming live pilots under the HKMA’s Project Ensemble will further demonstrate how tokenized funds and deposits can operate seamlessly within Hong Kong’s evolving digital asset and financial infrastructure.
FAQs
Q : Who can buy the fund now?
A : Professional and institutional investors in Hong Kong.
Q : What does the fund invest in?
A : Short-term U.S. government securities, with shares issued as on-chain tokens (gBENJI).
Q : Is retail access planned?
A: Franklin Templeton aims to launch a retail-approved version, pending SFC approval.
Q : How do HSBC tokenized deposits help?
A : They allow real-time, 24/7 wallet-to-wallet settlement within HSBC’s network, enhancing cash operations.
Q : How does this relate to Project Ensemble?
A : Project Ensemble sets standards and runs pilots for tokenized money, assets, and interbank settlement in Hong Kong.
Q : What blockchain is used?
A : Franklin Templeton uses a proprietary blockchain-integrated recordkeeping system to issue and service shares on-chain.
Q : Does the exact primary keyword matter for search?
A : Yes, using “Franklin Templeton tokenized money market fund Hong Kong” improves SEO by matching investor search intent.
Facts
Event
Launch of a tokenized USD UCITS money market fund for Hong Kong professional investorsDate/Time
2025-11-06T14:10:00+05:00Entities
Franklin Templeton; Hong Kong Monetary Authority (Project Ensemble); HSBC; OSLFigures
USD-denominated UCITS fund; invests in short-term U.S. government securities; on-chain token gBENJIQuotes:
“Looking ahead, we aim to offer a retail-approved tokenized fund, subject to SFC approval.” Tariq Ahmad, Head of APAC, Franklin Templeton Fund Selector AsiaSources
CoinDesk (launch report), Fund Selector Asia (details/quote), HSBC (tokenized deposits), HKMA (Project Ensemble)