HashKey, Franklin Templeton launch tokenised fund in Asia

HashKey Exchange has partnered with Franklin Templeton to offer the Franklin OnChain U.S. Government Liquidity Fund to investors in Asia through its Earn channel.

Aimed at eligible digital asset investors, the fund invests mainly in U.S. government money market instruments and U.S. dollar cash assets using blockchain-based infrastructure.

Under the arrangement, Franklin Templeton is expanding distribution of its tokenised money market fund into Asian digital asset markets, while HashKey Exchange is adding a regulated tokenised investment product to its yield-focused offering. The launch centres on the Franklin OnChain U.S. Government Liquidity Fund, also known as grBENJI.

The move comes as asset managers and digital asset platforms seek to connect traditional financial products with blockchain-based distribution. Tokenised funds tied to short-dated government instruments have drawn attention as investors look for lower-volatility products within digital asset markets.

HashKey Exchange, part of HashKey Holdings, is licensed in Hong Kong. The fund is available only to professional investors and is not being offered to the public in Hong Kong.

Franklin Templeton manages US$1.80 trillion in assets and has been among the large global asset managers developing tokenised fund products. Its OnChain U.S. Government Liquidity Fund gives investors exposure to assets commonly used in cash management strategies rather than to cryptocurrencies.

Regional access

The collaboration gives Franklin Templeton a route into regulated digital asset channels in Asia as financial groups test investor demand for blockchain-recorded versions of conventional securities and funds. For HashKey, the tie-up adds a product from an established fund house as competition grows among exchanges and platforms to broaden their range of regulated offerings.

The collaboration is intended to serve institutional and professional investors seeking access to tokenised financial products. It also reflects demand for yield-generating instruments backed by real-world assets.

In Hong Kong, the development adds to efforts by regulated digital asset businesses to expand beyond spot trading into products that more closely resemble mainstream finance. Money market funds have become one of the earliest formats for tokenisation because their underlying assets are relatively simple and generally liquid.

That structure may appeal to investors who want blockchain-based settlement or record-keeping without direct exposure to the price swings associated with many digital tokens. It also fits a broader trend among financial institutions exploring how tokenised versions of existing products can be distributed within regulated frameworks.

Executive remarks

Haiyang Ru outlined HashKey Exchange's view of the launch.

"Partnering with a global asset management leader like Franklin Templeton marks a monumental milestone for HashKey Exchange and the broader Asian digital asset landscape. By bringing the Franklin OnChain U.S. Government Liquidity Fund (grBENJI) onto our Earn channel, we are directly addressing the surging institutional demand for compliant, real-world asset (RWA) yield solutions. This collaboration bridges the gap between traditional finance and secure, regulated on-chain infrastructure, setting a new benchmark for transparency and capital market innovation across the region," said Haiyang Ru, Chief Executive Officer, HashKey Exchange BG, HashKey Exchange.

Franklin Templeton said the launch forms part of its regional digital assets strategy.

"We are excited to launch our tokenised money market fund on the HashKey Exchange platform. Leveraging blockchain technology, the Fund provides investors with enhanced transparency, security, accessibility, speed, and cost efficiency. Launching on HashKey is a key step in broadening our reach, tapping into their rapidly expanding client base of digitalnative banking and wealth platforms alongside established institutional clients, while advancing our digital assets and innovation strategy in the region," said Chetan Karkhanis, SVP, Digital Assets Client Engagement, Franklin Templeton.

Karkhanis also pointed to the potential for a broader product range between the two groups.

"We look forward to deepening this partnership by expanding beyond tokenised money market funds into other tokenised products over time, leveraging HashKey's multijurisdictional platform spanning Hong Kong, Singapore, Tokyo, Dubai and Bermuda," said Karkhanis.

HashKey Exchange is among the licensed virtual asset trading platforms in Hong Kong and holds approvals under Type 1 and Type 7 licences from the Securities and Futures Commission, as well as a licence under anti-money laundering rules. It also holds ISO 27001 and ISO 27701 certifications.

The launch of grBENJI is another example of traditional asset managers using digital asset venues to distribute tokenised versions of conservative investment products to professional investors.