Franklin Templeton has announced the launch of a tokenized U.S. dollar money market fund for professional investors in Hong Kong, marking the latest expansion of blockchain-based investment products in the Asian financial center.
The Franklin OnChain U.S. Government Money Fund is registered in Luxembourg and represents the first UCITS money market fund natively issued on blockchain available to institutional and professional investors in Hong Kong. The fund invests in short-term U.S. government securities to generate income while preserving capital and maintaining liquidity.
"Looking ahead, we aim to offer a retail-approved tokenized fund, subject to SFC approval, as part of our broader efforts to democratise access to investment solutions and foster a vibrant digital assets ecosystem in the region," said Tariq Ahmad, head of Asia-Pacific at Franklin Templeton, in a statement on Wednesday.
The fund utilizes Franklin Templeton's proprietary Benji Technology Platform for blockchain-integrated recordkeeping, offering enhanced transparency, security, accessibility, and cost efficiencies. The platform handles issuance, distribution, and servicing directly on-chain, creating what the company describes as the first end-to-end tokenized solution introduced by an asset manager in Hong Kong.
OSL Wealth Management is serving as a regulated distribution partner for the launch. "Hong Kong is becoming an institutionally trusted hub for digital assets," said Brian Chen, head of OSL Wealth Management. "OSL has been supporting innovative tokenized products since inception."
Franklin Templeton has participated in the Hong Kong Monetary Authority's Project Ensemble sandbox since 2024, exploring use cases where the fund's token, designated "gBENJI," delivers yield to investors while demonstrating interoperability with tokenized bank deposits.
The launch follows China Asset Management (Hong Kong)'s debut of the ChinaAMC HKD Digital Money Market Fund in February , signaling growing momentum for tokenized assets in the region.
Hong Kong has emerged as a regional leader in real-world asset (RWA) tokenization under a clearly defined regulatory framework for digital assets. In November, the HKMA outlined RWA tokenization plans under its Fintech 2030 strategy, including tokenized government bonds and Exchange Fund papers alongside development of an e-HKD stablecoin.
Recent initiatives include a September pilot program by UBS, Chainlink, and DigiFT testing automated fund tokenization, and Project Ensemble's exploration of wholesale central bank digital currency for settling tokenized assets between banks.
Franklin Templeton has been active in digital assets since 2018, developing blockchain technology solutions and operating node validators. The firm launched the world's first U.S.-registered mutual fund using blockchain technology in 2021, followed by the first fully tokenized UCITS fund in Luxembourg in 2024 and the first retail tokenized fund in Singapore in 2025.
The global asset manager oversees approximately $1.6 trillion in client assets and positions Benji as white-label infrastructure available to banks and asset managers for tokenizing securities.
