Franklin Templeton made history on November 6, 2025, by introducing Hong Kong’s first tokenized money market fund for professional investors. The Franklin OnChain U.S. Government Money Fund marks a significant step forward in Hong Kong’s push to become a global hub for digital finance.
This launch comes just days after the Hong Kong Monetary Authority unveiled its ambitious Fintech 2030 strategy, making Franklin Templeton’s fund the first project under this new initiative.
What Makes This Fund Different
The Franklin OnChain U.S. Government Money Fund is registered in Luxembourg and invests in short-term U.S. government securities. What sets it apart is how investors own their shares. Instead of traditional paperwork, shares are represented as digital tokens on a blockchain.
This tokenized structure allows the fund to process transactions faster, provide better transparency, and reduce costs compared to traditional funds. Each share is represented by one token called “gBENJI,” which investors can track and transfer digitally.
Only institutional and professional investors with at least HK$8 million (about US$1 million) in assets can currently invest in the fund. However, Franklin Templeton plans to launch a retail version pending approval from Hong Kong’s Securities and Futures Commission.
Powerful Partnerships Drive Innovation
Franklin Templeton didn’t launch this fund alone. The company partnered with HSBC and OSL, a Hong Kong-based cryptocurrency exchange, to test how the fund’s token could work with HSBC’s tokenized deposits.
Source: @FTDA_US
This collaboration enables around-the-clock settlement and smoother operations for investors. HSBC’s tokenized deposits can facilitate near-instant, 24/7 settlements for the money market fund, a major improvement over traditional banking hours.
OSL Wealth Management serves as the regulated distribution partner for the launch. Brian Chen, head of OSL Wealth Management, noted that “Hong Kong is becoming an institutionally trusted hub for digital assets.”
The fund uses Franklin Templeton’s proprietary Benji Technology Platform, which handles everything from issuance to distribution directly on the blockchain. This makes it the first end-to-end tokenized solution introduced by an asset manager in Hong Kong.
Hong Kong’s Fintech 2030 Vision
The timing of this launch is no coincidence. On November 3, 2025, Hong Kong Monetary Authority Chief Executive Eddie Yue unveiled the Fintech 2030 strategy, a five-year plan with over 40 initiatives to strengthen Hong Kong’s position as a fintech leader.
The strategy focuses on four main areas, known as “DART”: Data infrastructure, Artificial Intelligence, Resilience, and Tokenization of Finance. The tokenization pillar aims to accelerate real-world asset tokenization, including financial assets like bonds and deposits.
Under this plan, the HKMA will regularize the issuance of tokenized government bonds and explore tokenizing Exchange Fund papers. These tokenized assets will be settled using new forms of digital money, including e-HKD (Hong Kong’s central bank digital currency), tokenized deposits, and regulated stablecoins.
The HKMA will soon launch the Project Ensemble pilot to enable real-value transactions. Franklin Templeton has participated in this sandbox since 2024, testing how its fund token can deliver yield to investors while working with tokenized bank deposits.
Franklin Templeton’s Blockchain Experience
This isn’t Franklin Templeton’s first venture into blockchain-based finance. The $1.6 trillion asset manager has been building blockchain technology solutions since 2018.
In 2021, Franklin Templeton launched the world’s first U.S.-registered mutual fund using blockchain technology. The Franklin OnChain U.S. Government Money Fund (known as FOBXX in the U.S.) has grown significantly, reaching $512 million in assets by January 2025.
The company has steadily expanded FOBXX across multiple blockchains, including Ethereum, Solana, Avalanche, Arbitrum, Base, Polygon, and Aptos. This multi-chain approach gives investors flexibility in how they access and manage their investments.
Franklin Templeton also launched the first fully tokenized UCITS fund in Luxembourg in 2024 and the first retail tokenized fund in Singapore in 2025. The company positions its Benji platform as white-label infrastructure that other banks and asset managers can use to tokenize their own securities.
The Growing Tokenization Market
Franklin Templeton’s Hong Kong launch comes at a time when the tokenization market is expected to explode. A report by Ripple and Boston Consulting Group projects the market for tokenized real-world assets will grow from $0.6 trillion in 2025 to $18.9 trillion by 2033.
That represents a compound annual growth rate of 53% over eight years. By 2030, the market could reach $9.4 trillion, according to the same report.
Tokenization converts traditional assets like real estate, bonds, and stocks into digital tokens on a blockchain. This process enables 24/7 trading, fractional ownership, and automated compliance. Assets that were previously difficult to buy or sell can become more liquid and accessible.
Major financial institutions worldwide are racing to tokenize assets. BlackRock, JPMorgan, and other Wall Street giants have launched their own tokenized funds. Hong Kong is positioning itself to compete with these global players by creating a clear regulatory framework for digital assets.
Franklin Templeton’s fund follows China Asset Management (Hong Kong)’s launch of the ChinaAMC HKD Digital Money Market Fund in February 2025, showing that Hong Kong’s tokenization ecosystem is gaining momentum.
The Digital Finance Frontier
Franklin Templeton’s tokenized money market fund represents more than just a new investment product. It’s a test case for how traditional finance can merge with blockchain technology under proper regulatory oversight.
Tariq Ahmad, Franklin Templeton’s head of Asia-Pacific, emphasized the company’s commitment to expanding tokenized products in the region. The planned retail version could democratize access to these innovative investment solutions, allowing everyday investors to participate in blockchain-based finance.
As Hong Kong builds out its Fintech 2030 infrastructure, including tokenized government bonds and a central bank digital currency, Franklin Templeton’s fund could serve as a blueprint for other asset managers. The collaboration between a global financial institution, a major bank, and a crypto exchange shows how different players can work together in the evolving digital asset landscape.