Franklin Templeton launches tokenized USD fund in Hong Kong

Franklin Templeton will enable investors in Hong Kong to invest in short-term U.S. government debt.

Franklin Templeton, one of the world’s largest asset managers, is leveraging tokenization to expand global access to U.S. government securities. On Wednesday, November 5, the firm announced the launch of its USD money-market fund in Hong Kong.

The Franklin OnChain US Government Money Fund, which invests in U.S. government debt, has started trading in Hong Kong. Registered in Luxembourg last year, the fund will be available to institutional and accredited investors with at least $1 million in assets.

According to Tariq Ahmad, Head of APAC at Franklin Templeton, the launch aims to expand access to tokenized products. In the future, this will also include retail investors, he explained.

“Looking ahead, we aim to offer a retail-approved tokenized fund, subject to SFC approval, as part of our broader efforts to democratize access to investment solutions and foster a vibrant digital assets ecosystem in the region,” Tariq Ahmad, Franklin Templeton.

Franklin Templeton looks to expand retail access

Franklin Templeton has launched the fund in collaboration with HSBC and OSL, both digital assets pioneers in Hong Kong. HSBC operates as a digital asset custodian, while OSL holds a license for a crypto exchange and broker under the Hong Kong Securities and Futures Commission.

“Hong Kong is becoming an institutionally trusted hub for digital assets. OSL has been supporting innovative tokenized products since inception,” said Brian Chen, Head of OSL Wealth Management.

Recently, Hong Kong’s top regulators announced new rules that would allow licensed crypto platforms to tap into global liquidity.