Franklin Templeton Launches Tokenized US Government Fund in Hong Kong

Franklin Templeton has launched a tokenized US dollar money market fund for professional investors in Hong Kong, expanding its crypto offerings in Asia.

According to a statement shared with Cointelegraph on Wednesday, the Franklin OnChain US Government Money Fund is the first end-to-end tokenized structure by an asset manager to integrate issuance, distribution and service directly onchain in Hong Kong.

The tokenized fund will initially be available only to institutional and professional investors. It is registered in Luxembourg under a regulated framework that allows investment funds to be sold throughout the European Union.

The fund uses Franklin Templeton’s blockchain ledger system, while seeking to provide income and preserve capital through investments in short-term US government treasuries.

While access remains limited at launch, Franklin Templeton’s Asia-Pacific head Tariq Ahmad said it plans to offer “a retail-endorsed tokenized fund, subject to SFC approval.”

Brian Chen, head of OSL Wealth Management, which supports the launch as a regulated distribution partner, said that “Hong Kong has become a trusted institutional center for digital assets.”

The move by Franklin Templeton, one of the largest asset managers in the world, follows the launch of China Asset Management (Hong Kong) of its first tokenized. productthe ChinaAMC HKD Digital Money Market Fund, announced in February.

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Hong Kong advances asset tokenization

Unlike mainland China, Hong Kong operates under defined regulations framework for digital assets. This has allowed the city to emerge as a regional hub for crypto innovation and real activity (RWA) tokenization initiatives.

In August, the Hong Kong Monetary Authority presented Project Ensemble sandbox to explain how real-world assets can be tokenized and settled between banks through a wholesale central bank digital currency.