Franklin Templeton Launches Tokenized USD Money Market Fund in Hong Kong

KEY FACTS: Franklin Templeton launched the Franklin OnChain U.S. Government Money Fund on November 5, 2025, in Hong Kong. This is the first fully integrated, end-to-end tokenized USD money market fund in the region, targeting professional investors with short-term U.S. Treasuries via on-chain issuance, distribution, and servicing on its proprietary blockchain system. Domiciled in Luxembourg and distributed through OSL Wealth Management, the fund builds on Hong Kong’s growing digital asset ecosystem, following China Asset Management’s HKD tokenized fund earlier in 2025, while the firm pursues SFC approval for a retail version. This move aligns with Hong Kong’s proactive regulatory framework, including the HKMA’s Project Ensemble sandbox and plans for tokenized government bonds and e-HKD, positioning the city as a global leader in real-world asset tokenization. ___  Source: Franklin Templeton ___ # Franklin Templeton Launches Tokenized USD Money Market Fund in Hong Kong Franklin Templeton, one of the globe's most venerable asset management giants, has unveiled a groundbreaking tokenized U.S. dollar money market fund tailored for professional investors in Hong Kong. This launch, announced on November 5, 2025, marks a pivotal moment in the region's digital asset landscape, underscoring Hong Kong's ascent as a premier hub for innovative financial products that blend the stability of conventional investments with the efficiency of decentralized ledgers. The Franklin OnChain U.S. Government Money Fund is the first fully integrated, end-to-end tokenized fund structure offered by a major asset manager in Hong Kong. According to an official statement provided to Cointelegraph, the fund seamlessly incorporates issuance, distribution, and servicing directly on-chain, leveraging Franklin Templeton's proprietary blockchain recordkeeping system. This innovative approach aims to deliver reliable income streams while safeguarding capital through targeted investments in short-term U.S. government Treasuries, assets renowned for their low-risk profile and liquidity. At launch, the fund's accessibility is deliberately calibrated for a select audience: institutional and professional investors only. This cautious rollout reflects the regulatory nuances of the market while allowing Franklin Templeton to refine its operations in a controlled environment. The fund itself is domiciled in Luxembourg, benefiting from the European Union's robust regulatory framework that facilitates cross-border sales of investment vehicles. This strategic basing ensures compliance with stringent oversight as well as positions the product for potential expansion across Europe and beyond. Tariq Ahmad, Franklin Templeton's Head of Asia-Pacific, expressed optimism about the fund's trajectory, noting that the demand for on-chain financial products is surging in the region. He furthered that while the initial focus is on professional investors, they are actively pursuing a retail-approved version of the tokenized fund, pending approval from the Securities and Futures Commission (SFC). This is expected to democratize access and further accelerate adoption among everyday investors. Supporting this ambitious debut is OSL Wealth Management, a regulated distribution partner whose role cannot be overstated. Brian Chen, Head of OSL Wealth Management, hailed the initiative as proof of Hong Kong's maturing ecosystem. Chen remarked that collaborations such as with Franklin Templeton will validate the city's regulatory prowess and also pave the way for scalable, secure tokenized solutions that can compete on the global stage. Franklin Templeton's move is part of the wave of tokenized asset innovations sweeping through Asia, particularly in Hong Kong, which has carved out a distinct identity separate from mainland China's more restrictive stance on cryptocurrencies. Unlike its northern neighbor, Hong Kong has cultivated a progressive regulatory environment under the SFC and the Hong Kong Monetary Authority (HKMA), fostering an atmosphere ripe for experimentation and growth in real-world asset (RWA) tokenization. This latest development follows closely on the heels of China Asset Management (Hong Kong)'s trailblazing launch in February 2025 of the ChinaAMC HKD Digital Money Market Fund—the territory's inaugural tokenized product. That fund, denominated in Hong Kong dollars, quickly garnered attention for its potential to streamline settlements and reduce operational frictions in cross-border transactions. Franklin Templeton's USD-focused offering complements this by addressing the insatiable global appetite for dollar-denominated safe havens, especially in volatile economic times. The implications extend far beyond these two funds. Tokenization promises to revolutionize how money moves, settles, and grows. By eliminating intermediaries, enabling 24/7 trading, and enhancing transparency through immutable ledgers, these products could slash costs by up to 50% in some cases, according to industry estimates. For investors, the appeal lies in fractional ownership opportunities, instantaneous redemptions, and programmable features that traditional funds simply can't match. Over the past year, the HKMA has rolled out a series of initiatives designed to integrate blockchain into the fabric of its financial system. In August 2025, the authority introduced Project Ensemble, a collaborative sandbox that invites banks and fintech firms to experiment with tokenizing RWAs and settling them via a wholesale central bank digital currency (wCBDC). This platform builds on the wCBDC pilot launched in March 2024, which has already demonstrated how tokenized assets can facilitate atomic swaps. The momentum continued into September with a high-profile pilot spearheaded by banking behemoth UBS, in partnership with Chainlink and DigiFT. This project focused on automating the full lifecycle of fund tokenization, from issuance to redemption, using blockchain for seamless on-chain settlements. Early results have been promising, showcasing reduced processing times from days to mere minutes and error rates plummeting below 1%. Looking ahead, the HKMA's comprehensive Fintech 2030 strategy, unveiled in November 2024 and updated earlier this year, lays out an ambitious five-year roadmap. Key pillars include the issuance of tokenized government bonds (potentially the world's first fully digital sovereign debt instruments)and explorations into tokenized versions of Exchange Fund papers. Complementing these efforts is the planned rollout of the e-HKD stablecoin, a retail-oriented digital currency that could underpin everyday tokenized transactions. Together, these measures aim to position Hong Kong as a regional leader, as well as a global benchmark for regulated crypto innovation. Information Sources: - [Franklin Templeton Digital Assets/ X](https://x.com/FTDA_US/status/1985727492049506425) - [Hong Kong Fintech News](https://fintechnews.hk/36253/blockchain/franklin-templeton-tokenised-usd-fund/) - [Yahoo Finance](https://finance.yahoo.com/news/franklin-templeton-introduces-tokenised-money-093000228.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFZqtOVJLbu_CWVoqMRaoOUucqxbOoL58HwullKAobzEtODBOv4BfA6G_PQGCVdy9IsjAmQIK_529mc4PO7nLnA1CGZHz9PTO3k5gF_3A2jgu2VJMXL7Jt0gGDP9ZLqCLhj8ruTdHbCr4jpkDOYk7_1_aZeL3qqknFO7wpf1Ykn3) - [Cointelegraph](https://cointelegraph.com/news/franklin-templeton-tokenized-usd-money-market-fund-hong-kong) ---  ___ _If you found the article interesting or helpful, please hit the upvote button and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!_ ## This post was created via INLEO. 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