Tokenized Funds: The Next Frontier in Global Asset Management

Hong Kong's emergence as a digital asset hub is reshaping the global asset management landscape. By combining regulatory innovation with strategic corporate initiatives, the city is pioneering a new era of tokenized funds-blockchain-based financial instruments that promise to democratize access, enhance liquidity, and redefine traditional finance. At the forefront of this transformation is ChinaAMC (HK), whose Web 3.0 strategy aligns with Hong Kong's forward-looking regulatory framework to unlock unprecedented opportunities in real-world asset (RWA) tokenization.

Hong Kong's Regulatory Framework: A Catalyst for Innovation

Hong Kong's regulatory bodies, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), have laid the groundwork for tokenized fund adoption. In late 2023 and early 2024, they issued comprehensive guidelines for digital asset custody and tokenized investment products, ensuring investor protection while fostering innovation according to recent reports. This framework enabled the launch of the first retail tokenized fund in the Asia-Pacific region: the ChinaAMC HKD Digital Money Market Fund, which debuted on February 28, 2025.

The HKMA further accelerated progress with Project EnsembleTX, a pilot program launched in November 2025 to facilitate real-value tokenized transactions using the RTGS system for interbank settlements. This initiative, expected to operate through 2026, will eventually support 24/7 settlements in tokenized Central Bank Money (CeBM), bridging traditional finance with decentralized infrastructure. Meanwhile, the SFC's relaxation of rules allowing virtual asset trading platforms (VATPs) to integrate with global order books has enhanced liquidity and international market access. These measures collectively position Hong Kong as a regulatory sandbox for tokenized assets, attracting institutional and retail investors alike.

ChinaAMC's Web 3.0 Strategy: Bridging Traditional and Digital Finance

ChinaAMC (HK) has emerged as a key player in Hong Kong's tokenized fund ecosystem. Its flagship product, the HKD Digital Money Market Fund, is denominated in Hong Kong dollars and invests in short-term deposits and high-quality money market instruments. Built on the Ethereum blockchain, the fund offers 24/7 trading, real-time settlements, and competitive interest rates (e.g., 3.7% for the USD share class) according to market data. The fund's distribution through platforms like OSL Digital Securities underscores its accessibility to a broad investor base according to fund reports.

ChinaAMC's strategy extends beyond money market funds. The firm has outlined plans to tokenize real estate and private equity assets, leveraging blockchain's transparency and fractional ownership capabilities. This approach aligns with Hong Kong's vision to become a Web3 financial hub, as articulated in the SFC's Policy Statement 2.0 and the upcoming Stablecoins Bill. By integrating tokenized assets with decentralized finance (DeFi) protocols, ChinaAMC aims to create hybrid financial products that combine the efficiency of blockchain with the stability of traditional markets according to company disclosures.

Market Impact and Future Prospects

The tokenization of real-world assets is already demonstrating tangible market impact. ChinaAMC's USD Digital Money Market Fund (CUMIU) manages approximately $502 million in assets, with a management fee of 0.05% and a net asset value of $100 per token. Meanwhile, China Merchants Bank International's USD Money Market Fund on the BNB Chain has attracted over $3.8 billion in assets, showcasing the scalability of tokenized solutions. BNB Chain has become the second-largest RWA market by value, with $494.6 million in tokenized assets as of October 2025.

Industry forecasts suggest exponential growth. The global RWA market is projected to surge from $297.71 billion in 2024 to $9.43 trillion by 2030 at a 72.8% compound annual growth rate (CAGR). Hong Kong's tokenized fund market alone could reach $600 billion in assets under management (AUM) by 2030, driven by cross-border efficiencies and reduced transaction costs. However, regulatory caution from Beijing has led to a temporary pause in mainland brokerages' RWA activities in Hong Kong, emphasizing the need for macroprudential alignment.

Conclusion: A New Paradigm in Asset Management

Hong Kong's regulatory agility and ChinaAMC's Web 3.0 strategy are redefining the boundaries of asset management. Tokenized funds offer a compelling value proposition: fractional ownership, real-time settlements, and seamless integration with global markets. As the SFC and HKMA continue to refine their frameworks and institutions like ChinaAMC expand their tokenized portfolios, the next decade could witness a paradigm shift in how assets are owned, traded, and managed. For investors, the key takeaway is clear: tokenized funds are not a speculative fad but a foundational innovation with the potential to reshape global finance.