Global investment manager Franklin Templeton has launched its tokenized USD money market fund – the Franklin OnChain US Government Money Fund – for professional investors in Hong Kong.

By leveraging the asset manager’s blockchain-recordkeeping system the fund offers “investors enhanced transparency, security, accessibility, speed and cost efficiencies made possible by blockchain technology”.

The fund’s objective is to provide investors with a high level of current income, while preserving capital and maintaining liquidity and is yield-bearing, generating income through investments in high-quality, short-term US government securities.

The offering represents the first Luxembourg-registered tokenized UCITS money market fund natively issued on blockchain, available to institutional and professional investors in Hong Kong.

It also marks, the company points out, the first end-to-end tokenized solution introduced by an asset manager in this market, integrating blockchain-native issuance, distribution and servicing.

“This launch reflects our ongoing commitment to delivering innovative investment solutions that address the needs of modern investors by expanding the accessibility of tokenized products in this dynamic market,” notes Tariq Ahmad, the asset manager’s Asia-Pacific head. “Looking ahead, we aim to offer a retail-approved tokenized fund, subject to SFC [Securities and Futures Commission of Hong Kong] approval, as part of our broader efforts to democratize access to investment solutions and foster a vibrant digital assets ecosystem in the region."