Cryptocurrency-friendly investment firm Franklin Templeton has introduced 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 footprint in Asia.
The Franklin Onchain US Government Money Fund invests in short-term US government securities, with shares represented as tokens. Franklin Templeton said the structure allows for faster transactions, better transparency and lower costs than traditional fund structures.
The move builds on the firm’s role in Hong Kong’s Project ensemblean initiative of the Hong Kong Monetary Authority exploring tokenized finance. It also helps strengthen the city as a growing hub for institutional digital assets.
“This launch demonstrates our commitment to expanding tokenized investment products in Asia,” said Tariq Ahmad, Franklin Templeton’s head of APAC.
In collaboration with HSBC, one of the largest banks in the world, and OSL.
The Luxembourg-registered fund uses a proprietary blockchain recordkeeping system to issue, distribute and share service funds directly onchain. It is registered under the European Union’s acts for collective investment in transferable securities regulations. UCITS regulates investment funds To provide a high level of investor protection and create a single, orderly market for these funds throughout the EU member states.
Franklin Templeton has been active in Blockchain Finance since 2018, launching several tokenized funds and developing the Benji technology platform, which underlies the new Hong Kong product.
