Franklin Templeton Launches Tokenized Fund for Accredited Investors
Franklin Templeton has introduced Hong Kong’s first tokenized money market fund for professional investors, marking a significant expansion of blockchain-based investment products in Asia. The Franklin OnChain U.S. Government Money Fund represents a breakthrough moment for institutional digital assets. This Luxembourg-registered fund leverages the company’s proprietary Benji Technology Platform for blockchain-integrated recordkeeping. The launch signals growing institutional confidence in merging traditional finance with decentralized technologies.
Tokenized Fund Structure and Blockchain Integration
The Franklin OnChain U.S. Government Money Fund invests in short-term U.S. government securities, with shares represented as tokens. The platform handles issuance, distribution, and servicing directly on-chain, creating an end-to-end tokenized solution. This Franklin Templeton tokenized fund delivers enhanced transparency and security through blockchain technology. The tokenized structure enables faster transactions, greater transparency, and lower costs than traditional funds.
OSL Wealth Management is serving as a regulated distribution partner for the launch. The fund is available to institutional and professional investors with significant capital requirements. This approach ensures proper regulatory compliance while expanding access to blockchain-based investment vehicles.
Hong Kong’s Growing Digital Asset Ecosystem
Franklin Templeton has participated in the Hong Kong Monetary Authority’s Project Ensemble sandbox since 2024. The initiative explores use cases where the fund’s token, designated gBENJI, delivers yield to investors while demonstrating interoperability with tokenized bank deposits. In partnership with HSBC and OSL, Franklin Templeton tested how gBENJI could enable around-the-clock settlement and smoother investor operations.
Hong Kong’s Fintech 2030 plan includes over 40 measures to integrate AI, blockchain, and tokenized deposit frameworks. The HKMA is also designing a tokenized-deposit settlement system that could later integrate a central bank digital currency for interbank payments. These developments position Hong Kong as a leading hub for institutional digital assets in Asia.
Traditional Finance Meets Blockchain Innovation
Franklin Templeton has been active in digital assets since 2018, developing blockchain technology solutions and operating node validators. The firm launched the world’s first U.S.-registered mutual fund using blockchain technology in 2021. In September 2025, the firm partnered with DBS and Ripple Labs to launch an institutional platform on the XRP Ledger.
The global asset manager oversees approximately $1.6 trillion in client assets. This scale demonstrates the significant institutional capital now flowing into tokenized investment products. A joint report by Ripple and Boston Consulting Group projected that the value of tokenized real-world assets may increase from the current $36 billion to $19 trillion by 2033.
Expanding Access to Tokenized Investment Products
Tariq Ahmad, head of Asia-Pacific at Franklin Templeton, stated the firm aims to offer a retail-approved tokenized fund, subject to regulatory approval. This expansion would democratize access to blockchain-based investment solutions across Asia. The Franklin Templeton tokenized fund represents a template for future institutional adoption.
The launch demonstrates how major financial institutions are embracing blockchain infrastructure. Traditional asset managers recognize the efficiency gains from tokenization technology. This convergence creates new opportunities for investors seeking exposure to both traditional securities and blockchain innovation.
Conclusion
Franklin Templeton’s tokenized fund launch in Hong Kong establishes a new standard for institutional blockchain adoption. The integration of traditional finance with decentralized technology accelerates market transformation. As regulatory frameworks mature, tokenized investment products will become increasingly accessible to retail investors across Asia.
