China Asset Administration Firm (ChinaAMC), certainly one of China’s largest fund managers with greater than $400 billion in belongings below administration, has launched a tokenized cash market fund on Ethereum.
Based on information supplier RWA.xyz, the brand new product, ChinaAMC USD Digital Money Market Fund Class I USD (CUMIU), invests in short-term deposits and high-quality cash market devices. Its goal is to ship steady returns denominated in Hong Kong {dollars}.
ChinaAMC’s Fund Alerts Cautious Embrace of Tokenization in China
ChinaAMC developed CUMIU via the Libeara tokenization platform. Every token has a internet asset worth of $100 and a administration charge of simply 0.05%, positioning it as a low-cost possibility for establishments looking for blockchain-based fixed-income publicity.
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Notably, the fund has already deployed roughly $502 million, making it the Eleventh-largest tokenized product by complete worth.
Nonetheless, it nonetheless trails industry leaders such as BlackRock’s BUIDL, Ondo’s OUSG, and Franklin Templeton’s BENJI.
Regardless of its scale, distribution stays slender. Solely two entities presently maintain CUMIU tokens, reflecting a restricted rollout technique.
In the meantime, the selective distribution technique seems intentional. ChinaAMC can take a look at blockchain performance and compliance by limiting early participation earlier than broadening entry and addressing regulatory warning.
The launch comes as Chinese language regulators tread rigorously on real-world asset (RWA) tokenization.
Earlier this week, reports emerged that the nation’s securities regulator not too long ago instructed native brokerages to halt RWA initiatives in Hong Kong. That steerage displays considerations in regards to the velocity of digital asset adoption and an emphasis on tightening danger controls.
Tokenization permits monetary devices akin to bonds, equities, and funds to be issued as blockchain-based tokens. In latest months, Chinese institutions have used Hong Kong as a testing floor for these merchandise.
But regulators now need stricter verification of asset backing claims earlier than they enable tokenized funds to scale additional.
Even with tighter oversight, ChinaAMC’s launch underscores the broader momentum of tokenization. Greater than $30 billion value of RWAs at the moment are on-chain, which grew 7% up to now month.
On the identical time, the variety of RWA holders rose 9% to over 406,000, exhibiting accelerating investor adoption and suggesting that blockchain-based finance continues to realize floor globally.
