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Franklin Templeton Launches Hong Kong’s First Tokenized Fund

Franklin Templeton Launches Hong Kong’s First Tokenized Fund

Franklin Templeton partners with HSBC and OSL to debut a blockchain-based U.S. government money-market fund for Hong Kong’s professional investors, expanding tokenized investment offerings across Asia.

Fact Check
The assessment is based on strong, consistent evidence from multiple authoritative sources. Two highly credible and relevant sources, The Block (a specialized digital assets news source) and Fund Selector Asia (an investment industry publication), independently and explicitly state that Franklin Templeton launched Hong Kong's 'first' tokenized fund. A third source, while having low authority due to being a news aggregator, corroborates this information by republishing the original report from The Block. The remaining sources are either only contextually relevant without confirming the 'first' aspect, or are entirely irrelevant as they discuss actions taken by a different company (UBS). There is no conflicting evidence presented. The convergence of information from two independent, high-authority publications provides a strong basis to conclude the statement is likely true.
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Summary

Franklin Templeton announced the launch of its Franklin OnChain U.S. Government Money Fund in Hong Kong for professional investors, marking an expansion of its blockchain-based fund offerings in Asia. The fund invests in short-term U.S. government securities with shares represented as tokens on its proprietary blockchain recordkeeping system, enabling faster transactions, enhanced transparency, and reduced costs. Developed in collaboration with HSBC and OSL, the fund tested onchain yield delivery via the gBENJI token and integration with HSBC’s tokenized deposits for 24/7 settlement. It builds on Franklin Templeton’s participation in the Hong Kong Monetary Authority’s Project Ensemble and is registered under the EU’s UCITS regulations. The firm plans to launch a retail investor version following regulatory approval.

Terms & Concepts
  • Tokenized Money Market Fund: A fund whose shares are represented by digital tokens on a blockchain, offering improved transparency, efficiency, and settlement speed.
  • UCITS: European Union regulations that standardize and provide high investor protection for investment funds across EU member states.
  • gBENJI Token: Digital token representing shares in Franklin Templeton’s OnChain U.S. Government Money Fund, used to deliver yield and enable blockchain-based transactions.