Franklin Templeton has launched Hong Kong’s first tokenized money market fund, signaling a major leap forward for blockchain adoption in traditional finance.
Key Takeaways
- Franklin Templeton introduced the first tokenized U.S. Government Money Fund in Hong Kong, aimed at institutional investors.
- The fund is recorded on-chain and leverages blockchain to enhance speed, transparency, and reduce costs.
- The move aligns with Hong Kong’s Fintech 2030 strategy, which includes more than 40 initiatives to integrate blockchain and AI into its financial infrastructure.
- Franklin Templeton is partnering with HSBC and OSL to pilot real-world blockchain settlements and tokenized deposit applications.
What Happened?
Franklin Templeton officially launched its blockchain-based U.S. Government Money Fund in Hong Kong, offering institutional investors a secure and tech-forward alternative to traditional fund structures. This is the city’s first tokenized fund and a landmark in Hong Kong’s push to become a digital asset powerhouse in Asia.
🚨 Franklin Templeton has launched the Franklin OnChain US Government Money Fund $BENJI in Hong Kong, available to accredited investors and institutions.
— ALLINCRYPTO (@RealAllinCrypto) November 6, 2025
$600M worth of BENJI tokens are on Stellar $XLM, the biggest holder. Followed by $ETH and $ARB with $40 – $60M. pic.twitter.com/asUNzQfk7r
How the Tokenized Fund Works?
The Franklin OnChain U.S. Government Money Fund is registered in Luxembourg and compliant with UCITS, Europe’s investor protection regulation. It invests in short-term U.S. government securities, and each fund share is issued and serviced directly on blockchain.
According to Franklin Templeton, this model enables faster transactions, lower operational costs, and real-time transparency into fund holdings and performance. The fund is currently available to institutional and professional investors in Hong Kong with assets exceeding HK$8 million (about US$1 million).
This blockchain-native structure uses Franklin Templeton’s proprietary Benji Technology platform and is also integrated into their ongoing efforts under Project Ensemble, an initiative by the Hong Kong Monetary Authority (HKMA) to advance tokenized finance.
Deepening Institutional Blockchain Integration
Franklin Templeton’s fund is part of a broader collaboration with HSBC and OSL, a licensed digital asset platform in Hong Kong. Together, they tested how the fund token, gBENJI, could yield returns on-chain and interact with tokenized deposits for 24/7 settlements.
Brian Chen, Head of Asset Management at OSL said:
Tariq Ahmad, Head of APAC at Franklin Templeton added:
Lewis Sun, HSBC’s Global Head of Domestic and Emerging Payments, noted that the initiative “showcases the enormous potential of tokenized deposits to enable near-instant, 24/7 settlements.”
Aligned With Hong Kong’s Fintech 2030 Strategy
This fund supports the HKMA’s Fintech 2030 blueprint, which outlines over 40 measures to drive AI integration, blockchain development, and prepare the infrastructure for a possible central bank digital currency (CBDC).
HKMA Chief Executive Eddie Yue emphasized that Hong Kong is focused on resilience, innovation, and readiness for future financial transformation. Franklin Templeton’s fund acts as a real-world validation of the city’s tokenization roadmap, moving from pilot testing into production.
Future Plans and Retail Access
Franklin Templeton plans to expand its tokenization strategy by offering a retail version of the fund, making digital asset investing more accessible across Asia. The company has been active in blockchain since 2018, and in 2025, partnered with DBS and Ripple Labs to launch a platform on the XRP Ledger featuring sgBENJI and the RLUSD stablecoin.
The firm is also exploring a European exchange-traded product (ETP) as part of its global tokenization roadmap, blending traditional finance (TradFi) with modern blockchain infrastructure.
CoinLaw’s Takeaway
I think this launch is a perfect example of how traditional finance and blockchain are finally shaking hands in a meaningful way. Franklin Templeton is not just testing the waters anymore, they are diving in. From my experience, when you see heavyweight institutions like HSBC and Franklin Templeton not just talking but building, that’s your cue that things are getting real. Hong Kong positioning itself as a regulated and innovative hub could be game-changing for digital asset adoption across Asia. I found the structure of this fund particularly impressive because it cuts out the usual frictions and makes investing smarter and faster. This is not about hype, it’s about real infrastructure being laid down.
