CATENAA, Wednesday, November 12, 2025- Franklin Templeton has launched Hong Kong’s first Luxembourg-registered tokenized money-market fund, marking a major step in the city’s drive to expand digital asset investment.
The Franklin OnChain US Government Money Fund invests in short-term US government securities, with shares represented as blockchain tokens.
Initially open to institutional and professional investors with at least HK$8 million (US$1 million) in assets, the fund uses distributed ledger technology to enhance transaction efficiency and transparency.
A retail version is planned, pending approval from the Hong Kong Securities and Futures Commission.
The launch is part of the Hong Kong Monetary Authority’s five-year Fintech 2030 roadmap, which includes more than 40 projects to accelerate tokenization, artificial intelligence, and central bank digital currency adoption.
Franklin Templeton developed the blockchain platform for the fund and partnered with HSBC and OSL Group, a licensed virtual asset exchange, under the HKMA’s Project Ensemble initiative.
HSBC is exploring tokenized deposits to enable near-instant fund settlements, while OSL Wealth Management emphasizes Hong Kong’s growing reputation as an institutionally trusted hub for digital assets.
Franklin Templeton has been advancing blockchain-based investment products since 2018, including Luxembourg- and Singapore-registered tokenized UCITS funds.
The fund rollout aligns with Hong Kong’s new LEAP policy framework, which focuses on legal clarity, ecosystem growth, real-world adoption, and talent development.
Stablecoin licensing, tokenized government bonds, ETFs, and other asset tokenization initiatives are planned to expand secondary market activity and support real-world applications in metals, renewable energy, and beyond.
