Digital trading in Hong Kong has taken a step forward with the launch of the city’s first Luxembourg-registered tokenised money market fund by US asset manager Franklin Templeton, marking a major development under the Fintech 2030 plan unveiled this week to establish the city as a leading fintech hub.
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The Franklin OnChain US Government Money Fund, which invests in US government securities and was registered in Luxembourg last year, would be available to institutional and professional investors in Hong Kong who had a minimum of HK$8 million (US$1 million) in assets, according to a statement from Franklin Templeton on Wednesday.
Tokenisation allows investors to own blockchain-based digital representations of various assets, including deposits, bonds, stocks, cryptocurrencies and loyalty points.
“This launch reflects our ongoing commitment to delivering innovative investment solutions that address the needs of modern investors by expanding the accessibility of tokenised products in this dynamic market,” said Tariq Ahmad, head of Asia-Pacific at Franklin Templeton.
“Looking ahead, we aim to offer a retail-approved tokenised fund, subject to the Securities and Futures Commission’s approval, as part of our broader efforts to democratise access to investment solutions and foster a vibrant digital assets ecosystem in the region.”
The initiative is the first project under the Fintech 2030 strategy announced on Monday by Hong Kong Monetary Authority (HKMA) chief executive Eddie Yue Wai-man.
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