TechFlow news — On March 2, according to Caixin, the China Asset Management Hong Kong Dollar Digital Currency Fund has chosen to issue on the Ethereum public blockchain, with an initial size of approximately $107 million. The fund is reported to be the first tokenized money market fund in the Asia-Pacific region targeting retail investors.
Currently, the fund only allows primary market subscriptions and redemptions and has not yet enabled secondary market trading. In the future, it will strictly follow the guidance of the Hong Kong Securities and Futures Commission (SFC) and work with licensed virtual asset exchanges in Hong Kong to explore the development of secondary market products.
China Asset Management stated that tokenization can provide more yield-generating instruments for the on-chain ecosystem. It aims to attract stablecoin holders as investors and plans to explore tokenizing money market funds denominated in various currencies, including renminbi (RMB).
The underlying assets of the fund are identical to those of traditional money market funds, with no less than 70% of the net asset value invested in short-term deposits, bonds, and other financial instruments denominated and settled in Hong Kong dollars.
