Franklin Templeton Launches Hong Kong’s First Tokenized Money-Market Fund
Franklin Templeton, a global asset manager, has launched Hong Kong’s first tokenized money-market fund. The fund is named Franklin OnChain U.S. Government Money Fund. It is registered in Luxembourg and backed by short-term U.S. Treasury securities. Each investor’s share is a digital token on the blockchain, enabling instant and transparent tracking of ownership and transfers.
Hong Kong’s Fintech 2030 Strategy and Tokenization
The Hong Kong Monetary Authority (HKMA) revealed its Fintech 2023 Strategy during Hong Kong FinTech Week 2025. This strategy highlights over 40 initiatives to modernize the city’s financial infrastructure, integrate AI into finance, and develop a tokenization ecosystem. The Franklin tokenized fund is the first project under the HKMA’s fintech 2030 plan.
HKMA Chief Executive Eddie Yue called this the start of the “fintech 3.0” era. Hong Kong is now the world’s top fintech hub with over 1,200 firms. The city expects fintech revenue to exceed US$600 billion by 2032. The plan’s first project will enable settlement of tokenized money-market funds by year-end.
Sandy Kaul, Head of Innovation at Franklin Templeton, said, “We look forward to working with traditional institutions and Web3 platforms to accelerate tokenization and shape the future of investing.”
Global Blockchain Collaboration and Future Innovation
The HKMA is expanding blockchain initiatives worldwide as part of Fintech 2030. Yue said banks could use tokenized deposits and central bank digital currency for settlements. The HKMA is collaborating with central banks in Brazil and Thailand to improve cross-border trade via blockchain.
Franklin Templeton is also working with HSBC and OSL Group, a licensed virtual asset platform in Hong Kong, through the HKMA’s Project Ensemble. This sandbox project tests tokenized deposits and fund flows. HSBC noted the partnership could enable near-instant settlements between traditional and blockchain systems.
Tokenization is growing globally. A Ripple and Boston Consulting Group report estimates tokenized real-world assets could rise from $36 billion today to $19 trillion by 2033.
The HKMA’s Fintech 2030 plan includes strengthening cybersecurity, building a unified AI infrastructure, and expanding financial data access. It will launch an AI strategy to encourage responsible use and enhanced oversight with tools like the Responsible AI Toolkit and Project Noor.
Financial Secretary Paul Chan Mo-po stressed balancing innovation with investor protection and stability. He said, “While we encourage innovation, we must also ensure its real-world applicability and resilience.”
Hong Kong’s launch of Franklin Templeton’s tokenized fund marks a significant step towards integrating blockchain and AI into its future financial ecosystem.
