The U.S. asset manager debuts its blockchain-based fund for institutional investors as Hong Kong accelerates its real-world asset tokenization agenda.
Franklin Templeton Expands Digital Footprint in Asia
Global investment giant Franklin Templeton has introduced a tokenized U.S. dollar money market fund for professional investors in Hong Kong, marking a major milestone in the city’s growing digital asset ecosystem.
The Franklin OnChain U.S. Government Money Fund is the first end-to-end tokenized structure by an asset manager to integrate issuance, distribution, and servicing directly onchain in Hong Kong.
According to the company’s statement shared with Cointelegraph on Wednesday, the fund is registered in Luxembourg under the UCITS framework, allowing it to be distributed across the European Union while being accessible to institutional clients in Asia.
The fund uses Franklin Templeton’s proprietary blockchain recordkeeping system, investing primarily in short-term U.S. government securities to preserve capital and generate income.
Retail Access Could Follow
While the product is currently limited to institutional and professional investors, Tariq Ahmad, Franklin Templeton’s Head of Asia-Pacific, said the company plans to launch a retail-approved tokenized version, pending approval from the Securities and Futures Commission (SFC).
“We see this as a pivotal step toward a broader transformation of asset management through blockchain,” Ahmad said.
Brian Chen, head of OSL Wealth Management, the firm serving as the regulated distribution partner, emphasized Hong Kong’s emerging leadership in digital finance.
“Hong Kong is becoming an institutionally trusted hub for digital assets,” Chen said.
The move follows China Asset Management (Hong Kong)’s February launch of its own tokenized HKD money market fund, further signaling institutional confidence in blockchain-based financial products.
Hong Kong’s Push for Tokenized Finance
Hong Kong has positioned itself as Asia’s real-world asset (RWA) tokenization hub, thanks to clear regulation and strong institutional backing.
In August, the Hong Kong Monetary Authority (HKMA) unveiled the Project Ensemble sandbox, designed to explore tokenized asset settlement between banks using a wholesale central bank digital currency (wCBDC).
The HKMA’s ongoing Fintech 2030 strategy outlines further ambitions, including tokenized government bonds, Exchange Fund papers, and a retail-focused e-HKD stablecoin initiative.
In September, UBS, Chainlink, and DigiFT conducted a pilot in Hong Kong to test onchain fund tokenization and automated settlement — reinforcing the city’s role as a global testing ground for blockchain-based capital markets.
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