China Asset Administration Firm (ChinaAMC), one among China’s largest fund managers with greater than $400 billion in property beneath administration, has launched a tokenized cash market fund on Ethereum.
In keeping with knowledge supplier RWA.xyz, the brand new product, ChinaAMC USD Digital Cash 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 by the Libeara tokenization platform. Every token has a internet asset worth of $100 and a administration price of simply 0.05%, positioning it as a low-cost choice for establishments in search of blockchain-based fixed-income publicity.
Sponsored
Sponsored
Notably, the fund has already deployed roughly $502 million, making it the Eleventh-largest tokenized product by whole worth.
Nonetheless, it nonetheless trails business leaders equivalent to BlackRock’s BUIDL, Ondo’s OUSG, and Franklin Templeton’s BENJI.
Regardless of its scale, distribution stays slender. Solely two entities at present 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 fastidiously on real-world asset (RWA) tokenization.
Earlier this week, reviews emerged that the nation’s securities regulator just lately instructed native brokerages to halt RWA initiatives in Hong Kong. That steering displays issues in regards to the pace of digital asset adoption and an emphasis on tightening danger controls.
Tokenization permits monetary devices equivalent to bonds, equities, and funds to be issued as blockchain-based tokens. In current months, Chinese language establishments have used Hong Kong as a testing floor for these merchandise.
But regulators now need stricter verification of asset backing claims earlier than they allow 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% prior to now month.
On the similar time, the variety of RWA holders rose 9% to over 406,000, exhibiting accelerating investor adoption and suggesting that blockchain-based finance continues to achieve floor globally.