Franklin Templeton Expands Tokenized Treasury Distribution Across Asia via HashKey

OnChain Treasury Access for Institutional Clients

Franklin Templeton has launched distribution of its tokenized government money market fund through HashKey Exchange, opening blockchain-wrapped U.S. Treasury access to the Hong Kong platform’s professional investor base. The Franklin OnChain U.S. Government Liquidity Fund, traded as grBENJI, invests in U.S. government money market instruments and dollar cash, with yields tracking short-term Treasury rates. The token currently offers approximately 3.6% annual returns at a $1.00 net asset value, restricted to qualified institutional buyers and unavailable for public distribution in Hong Kong.

This expansion builds on Franklin Templeton’s tokenization roadmap that began in 2021, when the firm became the first U.S.-registered mutual fund to record share ownership on a public blockchain. The HashKey listing extends the firm’s distribution network into a major Asian financial hub, providing institutional clients with compliant access to government-backed yield products through blockchain infrastructure.

Multiregional Expansion and Strategic Partnerships

Franklin Templeton is positioning itself as a comprehensive tokenized finance provider, planning to roll out additional products beyond money market funds across multiple jurisdictions. The firm intends to leverage HashKey’s platform infrastructure across Hong Kong, Singapore, Tokyo, Dubai, and Bermuda, according to Chetan Karkhanis, Franklin Templeton’s senior vice president for digital assets client engagement.

The company’s institutional distribution strategy spans multiple partnerships. In May, Franklin Templeton entered a strategic collaboration with Payward, parent of Kraken, to develop tokenized equities, custody solutions, and actively managed yield products. The BENJI token is being integrated into Kraken as collateral and as a cash management tool for institutional users. Earlier partnerships include deals with MoonPay Trade in June—enabling institutions to swap stablecoins directly into the fund—and integrations with BNB Chain following a Binance collaboration. DigiFT also received BENJI distribution capabilities in May.

Perhaps most significantly, Franklin Templeton strengthened its crypto infrastructure through acquiring 250 Digital, a CoinFund spinoff, in June. The firm paid part of the acquisition price in BENJI tokens, demonstrating its commitment to conducting mergers and acquisitions using blockchain-based assets. According to Haiyang Ru, chief executive of HashKey Exchange BG, the HashKey listing addresses rising institutional demand for compliant real-world asset yield.

The Path Forward

Franklin Templeton’s accelerated tokenization strategy reflects a broader institutional shift toward blockchain-based financial services. By establishing compliant, multiregion distribution networks and building a dedicated crypto arm, the firm is moving beyond experimental pilots toward operational infrastructure for institutional tokenized finance. This progression—from money market funds into equities and yield products, supported by multiple regional partnerships—signals that real-world asset tokenization is transitioning from concept to institutional reality.

For the broader crypto market, institutional-grade tokenized products validate the use of blockchain infrastructure for regulated financial services, potentially accelerating adoption of digital assets across traditional institutional portfolios.

Source: Franklin Templeton and HashKey Exchange, via Decrypt. Not financial advice.