ChinaAMC (HK), the Hong Kong arm of Chinese fund house China Asset Management Company, has launched the city’s first tokenised money market fund, which is also available to retail investors.
It’s worth noting that Hong Kong is currently expanding its functional offerings to compete as a digital asset hub. A new Hong Kong dollar-denominated fund has been launched on the local OSL cryptocurrency exchange and the Solomon securities brokerage. This fund is designed to provide investors with a low-risk, blockchain-based investment option.
As part of the established practice, money market funds typically invest in the safest and most liquid short-term financial instruments offering higher yields and greater flexibility compared to traditional bank deposits. The tokenised version of the mentioned funds issues digital tokens on the blockchain, which are investments in the fund with promises of lower investment thresholds and faster settlements.
Last year, several major United States fund managers launched money market tokens targeting crypto traders. They offer a low-risk product that provides higher returns compared to stablecoins.
BlackRock, the world’s largest asset manager, launched the BUIDL money market token for professional investors in March last year.
OSL executive director Gary Tiu stated during a media briefing that currently global investors deploying capital on-chain typically have a wide range of choices in the context of risky assets, but opportunities become quite limited when seeking to reduce the risks of on-chain investing.
ChinaAMC plans to expand access to its tokenised money market fund to more brokerages and virtual asset trading platforms. This will allow trading 24/7 in the future. The corresponding statement was made by Thomas Zhu, head of digital assets and family office business at ChinaAMC.
As we have reported earlier, University of Austin Launches $5 Million Bitcoin Investment Fund.
