Franklin Templeton, HSBC Forge New Settlement Path with Hong Kong’s First Tokenized Fund

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A coalition of traditional finance and crypto giants has launched Hong Kong’s first tokenized fund, testing a new model for near-instant settlement between legacy and blockchain systems. Franklin Templeton debuted the fund in collaboration with HSBC and licensed digital asset platform OSL Group.

The project, operating within the HKMA’s “Project Ensemble” sandbox, is exploring the use of tokenized deposits to facilitate fund flows.

HSBC executives highlighted that the setup could enable almost immediate settlement, bridging the gap between traditional finance and digital asset platforms. This collaboration signals a growing convergence of major financial institutions in Hong Kong’s expanding digital asset market, all underpinned by the government’s new Fintech 2030 strategy.