Franklin Templeton Brings Tokenized U.S. Government Liquidity Fund to Asia via HashKey Exchange

Franklin Templeton has teamed up with HashKey Exchange to distribute its tokenized U.S. government liquidity fund across regulated digital-asset markets in Asia, targeting professional investors only. HashKey said it began offering the Franklin OnChain U.S. Government Liquidity Fund through its Earn channel on Aug. 24. The product uses blockchain infrastructure to record ownership and process transactions onchain, while investing in U.S. government money market instruments and U.S. dollar cash assets. Access is restricted to professional investors, meaning retail participants in Hong Kong cannot subscribe to the tokenized fund. The limitation aligns with Hong Kong’s regulatory framework for investment products within its licensed digital-asset sector. For Franklin Templeton, the arrangement adds a regional distribution route that combines its asset-management capabilities with HashKey’s blockchain rails, positioning the strategy within a regulated structure designed to support transparent activity. HashKey’s international footprint could also provide a path for broader rollout of tokenized offerings. Franklin Templeton executive Chetan Karkhanis pointed to HashKey’s network as a key element of the long-term distribution plan. HashKey’s platform spans Hong Kong, Singapore, Tokyo, Dubai, and Bermuda, though any expansion would depend on local licensing, investment rules, and professional-investor eligibility standards. The partnership also reinforces Franklin Templeton’s presence in Hong Kong, where it previously launched the city’s first tokenized money market fund. That November 2025 debut was the first project developed under the Hong Kong Monetary Authority’s Fintech 2030 modernization strategy. The launch comes as tokenization of real-world assets continues to expand across categories including government debt, private credit, commodities, property interests, and regulated fund structures. RWA.xyz estimated the tokenized-asset market at $38.2 billion as of Aug. 23, up from $20.6 billion a year earlier. Tokenized U.S. Treasury debt accounted for $15.6 billion, making government securities one of the largest segments. By bringing the fund to HashKey’s Earn channel, Franklin Templeton broadens its Asian distribution while HashKey adds another regulated investment product to its blockchain-based offering. Professional-investor requirements still limit access, but the agreement establishes a foundation for wider tokenized product distribution across regulated markets.