Franklin Templeton Launches the First USD-Denominated Tokenized Money Market Fund in Hong Kong

Franklin Templeton Investments has officially introduced the Franklin OnChain US Government Money Fund, a USD-denominated tokenized money market fund now available to professional and institutional investors in Hong Kong.
The launch marks a significant milestone for the global asset manager as it integrates traditional financial infrastructure with modern blockchain technology.

A Tokenized UCITS Product to Enhance Transparency and Efficiency

Registered in Luxembourg, the fund is structured as a tokenized UCITS product, with ownership records and transactions maintained via Franklin Templeton’s proprietary distributed ledger technology. This innovation is expected to enhance transparency, accelerate settlement processes, and reduce investment costs, while providing yield-bearing exposure to short-term U.S. government securities as its underlying assets.

In an official statement, Franklin Templeton confirmed that this initial launch targets professional and institutional investors in Hong Kong. Moving forward, the firm plans to work closely with local regulators, including authorities aligned with the Fintech 2030 Strategy, to expand fund access to retail investors once formal approval is granted. The initiative aligns with Hong Kong’s vision of establishing a regulated and sustainable asset tokenization ecosystem.

Strengthening Hong Kong’s Position as a Digital Asset Hub

The launch also involves a network of local distribution partners and infrastructure providers, ensuring that the tokenized fund can be traded securely and in full compliance with Hong Kong’s regulatory framework. Industry participants view this collaboration as a further reinforcement of Hong Kong’s role as a global financial center that effectively merges digital asset innovation with strong regulatory oversight.

Early market reports indicate strong institutional interest in the tokenized fund.
Several sources estimate its initial fund size to be in the hundreds of millions of U.S. dollars, with some reports suggesting a value approaching USD 410 million. However, the exact figure and total assets under management (AUM) may vary depending on timing and data sources. Franklin Templeton advises investors to refer to official fund registration documents or prospectus filings for verified information.

A Strategic Move Toward On-Chain Liquidity and Fixed-Income Innovation

Market analysts view this launch as more than a promotional move  rather, it represents a strategic breakthrough that introduces on-chain liquidity for fixed-income instruments. The tokenization of a U.S. government debt-backed money market fund is seen as a major step toward faster settlements, greater capital market efficiency, and broader global investor access.

However, experts emphasize that the long-term success of this initiative will depend on institutional adoption, integration with traditional financial systems, and regulatory approval should the fund eventually open to retail investors.