Crypto-friendly investment firm Franklin Templeton has unveiled a blockchain-based money market fund for professional investors in Hong Kong and said it is also working on a version for retail investors as it looks to expand its presence in Asia.
The Franklin OnChain US Government Money Fund invests in short-term US government securities, with shares represented as tokens. Franklin Templeton says the structure allows for faster transactions, greater transparency and lower costs than traditional fund structures.
The move builds on the company’s role in the Hong Kong Joint Project, an initiative by the Hong Kong Monetary Authority exploring tokenized finance. It also helps strengthen the city as a growing hub for institutional digital assets.
“This launch shows our commitment to expanding tokenized investment products in Asia,” said Tariq Ahmad, Head of APAC at Franklin Templeton.
In partnership with HSBC, one of the world’s largest banks, and OSL, a Hong Kong-based cryptocurrency exchange, Franklin Templeton tested how the fund’s token, gBENJI, could offer on-chain performance and interact with HSBC’s tokenized deposits to enable round-the-clock settlements and smoother investor operations.
The Luxembourg-registered fund uses a proprietary blockchain record-keeping system to issue, distribute and manage fund shares directly on-chain. It is registered under the regulations of Collective Investment Organizations in Transferable Securities of the European Union. UCITS regulate investment funds to provide a high level of protection to investors and create a single, harmonized market for these funds in all EU member states.
Franklin Templeton has been active in blockchain finance since 2018, launching several tokenized funds and developing its Benji technology platform, which underpins the new Hong Kong product.
