China Asset Administration Firm (ChinaAMC), one in every of China’s largest fund managers with greater than $400 billion in belongings below administration, has launched a tokenized cash market fund on Ethereum.
In accordance 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 secure 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 web asset worth of $100 and a administration price of simply 0.05%, positioning it as a low-cost choice for establishments searching 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.
ChinaAMC Tokenized Fund. Supply: RWA.xyz
Nevertheless, it nonetheless trails business leaders resembling BlackRock’s BUIDL, Ondo’s OUSG, and Franklin Templeton’s BENJI.
Regardless of its scale, distribution stays slender. Solely two entities at the moment 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, stories emerged that the nation’s securities regulator just lately 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 resembling 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 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 are actually on-chain, which grew 7% up to now month.
On the similar time, the variety of RWA holders rose 9% to over 406,000, displaying accelerating investor adoption and suggesting that blockchain-based finance continues to realize floor globally.
