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 in a bid 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, better transparency and lower costs than traditional fund structures.
The move builds on the company’s role in Project Ensemble Hong Kong, a Hong Kong Monetary Authority initiative exploring tokenized finance. It also helps strengthen the city as a growing hub for institutional digital assets.
“This launch shows our commitment to growing 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 token, gBENJI, could generate on-chain yield and interact with HSBC token deposits to enable 24-hour settlement and smoother trading for investors.
The Luxembourg-registered fund uses a proprietary blockchain recordkeeping system to issue, distribute and manage fund shares directly on-chain. It is registered under the regulations governing undertakings for collective investment in transferable securities of the European Union. UCITS regulate investment funds to provide a high level of investor protection and to create a single, harmonized market for such funds across EU member states.
Franklin Templeton has been active in the blockchain finance sector since 2018, launching several tokenized funds and developing its Benji technology platform, which underpins the new Hong Kong product.
