Franklin Templeton launches tokenized money market funds on…

What does Franklin Templeton offer through HashKey?

Franklin Templeton partnered with Hong Kong-based HashKey Exchange to distribute a tokenized U.S. government money market fund. As demand for tokenized real-world assets continues to grow, the asset manager is expanding its digital asset strategy in Asia. HashKey launched the Franklin OnChain U.S. Government Liquidity Fund on Monday through its Earn channel. The product provides eligible investors with the opportunity to invest in a tokenized fund that mainly invests in U.S. government money market instruments and U.S. dollar cash assets. This product is limited to professional investors and is not open to the Hong Kong public. The structure combines traditional low-risk investment strategies with blockchain-based ownership and distribution, allowing professional clients to gain exposure through digital asset platforms rather than traditional fund channels. The partnership also provides Franklin Templeton with another avenue to enter the Asian institutional crypto market. HashKey operates in multiple jurisdictions including Hong Kong, Singapore, Tokyo, Dubai and Bermuda, providing a potential distribution network for more tokenized products.

Chetan Karkhanis, senior vice president of digital asset customer engagement at Franklin Templeton, said: "We look forward to deepening this partnership and expanding from tokenized money market funds to other tokenized products over time, taking full advantage of HashKey's multi-jurisdiction platform across Hong Kong, Singapore, Tokyo, Dubai and Bermuda."

Why are money market funds on the chain?

Tokenized money market funds have become one of the largest sectors in real-world asset tokenization because they combine blockchain settlements with exposure to traditional assets such as U.S. Treasury bonds and cash. For investors, the appeal lies not in replacing underlying investments, but in changing the ownership record and transfer methods. Tokenization allows fund shares to interact with digital asset infrastructure, potentially making it easier to use with custody, trading and settlement systems built around blockchain networks. U.S. government securities are particularly suitable for this model because they already serve as core collateral and source of liquidity in traditional financial markets. The tokenized version can extend these features to digital asset markets while providing investors with exposure to government-backed debt rather than volatile cryptocurrencies. This approach is becoming increasingly important as cryptocurrency companies, exchanges and institutional investors seek alternative income to holding idle dollar balances or non-yielding stablecoins.

Investor Inspiration

The launch of HashKey shows that tokenization has moved from the experimental stage to mature distribution channels. The key question is whether professional investors will start to view tokenized treasury bonds as regular cash management products rather than separate crypto asset allocations.

How important is Asia to Franklin Templeton's tokenization strategy?

Franklin Templeton has been expanding its tokenization business in Asia as financial centers such as Hong Kong and Singapore develop rules for blockchain-based financial products. In November 2025, the asset management company launched the Franklin OnChain U.S. Government Monetary Fund in Hong Kong, becoming the first tokenized money market fund launched under the Hong Kong Monetary Authority's "FinTech 2030" program. The latest HashKey arrangement adds distribution channels rather than just introducing another blockchain-based fund. This distinction is important because tokenization can gain institutional relevance only if investors can acquire, hold and ultimately use these products through regulated venues. HashKey's presence in multiple financial centers may also push the cooperation beyond Hong Kong. Franklin Templeton has said that the relationship may include other tokenized assets in the future, suggesting that money market funds may be just an entry point rather than the ultimate product category.

How big is the tokenized RWA market?

As of August 23, the broader real-world asset tokenization market had reached approximately US$38.2 billion, compared with US$20.6 billion a year ago. This represents an increase of approximately 85% in 12 months, as asset management companies, cryptocurrency companies and financial institutions increase the number of traditional financial assets represented on the blockchain network. Tokenized U.S. Treasury bonds accounted for approximately $15.6 billion of the total, making government securities one of the largest components of the market. This concentration reflects strong demand for assets that combine U.S. dollar exposure, relatively low credit risk and interest income. For platforms like HashKey, distribution tokenization funds have also broadened the range of products available beyond cryptocurrency trading. Professional customers may use the same digital infrastructure to hold cryptoassets, stablecoins, and tokenized traditional investments. As a result, Franklin Templeton's latest move has intensified the competition for who controls the tokenized financial distribution layer. Asset management companies bring regulated investment products, while exchanges and digital asset platforms provide the infrastructure and customer relationships needed to bring these products to investors. If tokenized treasury bonds continue to grow at current rates, cooperation between traditional asset managers and regulated crypto platforms could become an increasingly common way for institutional investors to enter the on-chain market.