"China AMC Pioneers Asia's First Blockchain Money Market Fund"
1min read China Asset Management, one of the country's largest fund management companies, has launched a tokenized money market fund on the Ethereum blockchain. The fund, a first in the Asia Pacific region, aims to bring investment back to China by combining traditional finance with blockchain technology.
The fund, approved by Hong Kong's Securities and Futures Commission, allows investors to access money markets through a blockchain platform. This move aligns with Hong Kong's efforts to establish itself as a blockchain hub for innovation. China Asset Management, with over RMB 2.58 trillion in assets under management, is the parent company of China Asset Management Hong Kong, which launched the fund.
Gan Tian, CEO of China Asset Management, sees this milestone as a key step in the company's strategy towards Web 3, with tokenization being a critical focus. Tokenized funds offer revolutionary advantages such as blockchain-based title issuance and transparent settlement, transforming traditional markets and providing better access to investors.
Unlike traditional bank deposits, money market funds offer higher yields, short-term trading, and relatively safe investments. A tokenized version of these markets improves upon these benefits, adding faster settlement times and lower investment thresholds. Ethereum tokenized funds allow China amc to embed interest-bearing tools on the blockchain, providing retail investors with more accessible income streams and offering traditional investors new advantages of blockchain trading.
The fund's approval by the Securities and Futures Commission (SFC) provides the blockchain community with more access to investment opportunities. It offers publicly verified, scalable, and secure transactions, as well as diversified investments to retail consumers with scalable settlement capabilities.
China Asset Management has greater ambitions for the blockchain community. It aims to create more funds in America and Brazil, develop a global presence, and further draw investors back to China. Mary Huen, CEO of standard Chartered in Hong Kong, supports China AMC HK's innovative product, allowing retailers to make money from blockchain technology and further establishing Hong Kong as a blockchain hub.
Hong Kong authorities have been actively seeking new blockchain technologies to attract global investment and make markets more liquid. Christopher Hui, Financial Services Secretary Hong Kong, sees tokenization as a key component in enhancing traditional finance and bringing Hong Kong to the forefront of web3 technology.
