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 response to 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 Indicators 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 charge of simply 0.05%, positioning it as a low-cost possibility for establishments searching for blockchain-based fixed-income publicity.
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 trade leaders resembling BlackRock’s BUIDL, Ondo’s OUSG, and Franklin Templeton’s BENJI.
Regardless of its scale, distribution stays slim. 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 rigorously on real-world asset (RWA) tokenization.
Earlier this week, studies emerged that the nation’s securities regulator not too long ago instructed native brokerages to halt RWA initiatives in Hong Kong. That steerage displays issues concerning the velocity of digital asset adoption and an emphasis on tightening threat 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 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 are actually on-chain, which grew 7% prior 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.
The put up Chinese language Firm Debuts $500 Million Ethereum Tokenization Fund appeared first on BeInCrypto.
