Franklin Templeton Launches Hong Kong’s First Tokenized Fund Under Fintech 2030 Strategy

Franklin Templeton introduced Hong Kong’s first tokenized money-market fund under the HKMA’s Fintech 2030 roadmap.

The HKMA plan includes 40 measures integrating AI, tokenization, and a framework for potential CBDC settlement.

Partnerships with HSBC and OSL Group test tokenized deposits and near-instant settlement through Project Ensemble.

Hong Kong’s financial sector is entering a new stage of digital transformation as Franklin Templeton introduced the region’s first tokenized money-market fund. The launch aligns with the Hong Kong Monetary Authority’s (HKMA) Fintech 2030 strategy, which aims to connect artificial intelligence and blockchain technology across financial services. The initiative comes as part of broader efforts to modernize asset management and payment systems using tokenized infrastructure.

First Tokenized Fund Under New Fintech Roadmap

Franklin Templeton’s new offering, called the Franklin OnChain U.S. Government Money Fund, is registered in Luxembourg and supported by short-term U.S. Treasuries. The fund issues blockchain-based tokens that represent investor shares and record ownership through a distributed ledger. The project marks the first step under HKMA’s recently launched Fintech 2030 plan, which outlines a roadmap for next-generation financial innovation.

Chief Executive Eddie Yue Wai-man introduced the plan earlier this week, announcing more than 40 policy measures to strengthen financial sector resilience. The measures cover the use of AI tools, creation of a tokenization ecosystem, and development of secure data frameworks for financial institutions. The HKMA also began building a tokenized-deposit settlement model that may later include a central bank digital currency for interbank transfers.

Collaboration With Local Institutions and Virtual-Asset Platforms

Franklin Templeton is partnering with HSBC and OSL Group, one of Hong Kong’s licensed virtual-asset platforms, under the HKMA’s Project Ensemble. The initiative tests tokenized deposits and fund transactions in a regulatory sandbox. HSBC executives stated that the setup enables faster reconciliation between traditional and blockchain-based systems, potentially allowing near-instant settlement of transactions.

The collaboration demonstrates how tokenized deposits and funds can operate together within regulated environments. Project Ensemble provides a controlled testing space where participants can study the impact of digital tokens on payment infrastructure and liquidity management.

Integration of Blockchain and AI Across Finance

The Fintech 2030 strategy represents a major step toward combining digital assets, AI-driven analytics, and regulatory innovation. HKMA’s framework encourages banks, asset managers, and fintech firms to use tokenization for more efficient fund distribution and reporting. The plan also includes measures to strengthen cybersecurity standards and enhance data governance for blockchain applications.

By linking tokenized assets with banking networks, Hong Kong aims to establish a foundation for digital settlement systems compatible with future CBDC operations. The government expects these initiatives to create faster, more transparent financial transactions while maintaining strict compliance controls.

Worldwide, asset managers are expanding tokenization projects to improve operational efficiency and transparency in capital markets. A report from Ripple and Boston Consulting Group in April estimated that tokenized real-world assets could rise from about $36 billion to $19 trillion by 2033. Franklin Templeton’s Hong Kong fund positions the city within this broader shift toward regulated blockchain-based financial products.