Franklin Templeton Launches Blockchain Money Market Fund in Hong Kong

Franklin Templeton launched its first tokenized money market fund in Hong Kong on November 6, backed by short-term US Treasury bonds and supported by blockchain technology.

This initiative marks a significant advancement in Hong Kong’s ‘Fintech 2030’ strategy, showcasing institutional engagement in tokenized assets and potential transformation in fund settlement processes.

Blockchain-Based Fund Pioneers Innovation in Hong Kong

Franklin Templeton’s launch of the Franklin OnChain US Government Money Fund in Hong Kong is a significant development. Backed by short-term US Treasury bonds, the fund records ownership via blockchain, allowing real-time settlement. Tariq Ahmad, the Head of Asia-Pacific at Franklin Templeton, emphasized the plan to eventually extend the fund’s accessibility to retail investors.

This move signifies Hong Kong’s commitment to expanding blockchain technology within the financial sector, aligning with the Hong Kong Monetary Authority’s Fintech 2030 strategy. Collaboration with HSBC and OSL supports tokenization trails, offering insights into future asset flows and integration.

Tariq Ahmad, Head of Asia-Pacific, Franklin Templeton, “This launch reflects our ongoing commitment to delivering innovative investment solutions that address the needs of modern investors by expanding the accessibility of tokenised products in this dynamic market. Looking ahead, we aim to offer a retail-approved tokenised fund, subject to the Securities and Futures Commission’s approval, as part of our broader efforts to democratise access to investment solutions and foster a vibrant digital assets ecosystem in the region.”

Tokenization and Financial Market Transformation

Did you know? In 2018, Franklin Templeton pioneered blockchain finance by developing the Benji Technology Platform, setting a foundation for disruptive innovations like the Franklin OnChain US Government Money Fund.

Ethereum’s value was at $3,387.74 based on CoinMarketCap’s latest update. The market cap registers $408.89 billion, with a 24-hour trading volume of $36.57 billion, declining 50.91%. In the last 90 days, Ethereum’s price shifted by -12.98%, indicating fluctuating investor sentiments.

Coincu’s research suggests that Franklin Templeton’s initiative could significantly spur advancements in financial frameworks. The adoption of cutting-edge tokenization technology might provide more efficient asset management solutions while enhancing liquidity in the digital assets market, benefitting long-term institutional growth.