Franklin Templeton Launches First Tokenized Money Market Fund in Hong Kong

According to The Block, Franklin Templeton has launched its first tokenized money market fund in Hong Kong. The product, named the 'Franklin OnChain U.S. Government Money Fund,' is backed by short-term U.S. Treasury securities, with shares issued and ownership recorded via blockchain. This initiative marks the first implemented project under the Hong Kong Monetary Authority's (HKMA) 'Fintech 2030' strategy, which includes plans for AI and tokenization ecosystem development. The fund is participating in HKMA's 'Project Ensemble' sandbox, collaborating with HSBC and OSL to test tokenized deposits and fund flows, aiming to achieve near-instant settlement between traditional and on-chain systems. A report by Ripple and BCG estimates that the tokenization of physical assets could reach approximately $19 trillion by 2033.