Chinese Company Debuts $500 Million Ethereum Tokenization Fund
China Asset Management Company (ChinaAMC), one among China’s largest fund managers with greater than $400 billion in belongings below administration, has launched a tokenized cash market fund on Ethereum.
According to information supplier RWA.xyz, the brand new product, ChinaAMC USD Digital Money 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 Signals Cautious Embrace of Tokenization in China
ChinaAMC developed CUMIU by way of the Libeara tokenization platform. Each token has a internet asset worth of $100 and a administration payment of simply 0.05%, positioning it as a low-cost choice 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.
However, it nonetheless trails industry leaders such as BlackRock’s BUIDL, Ondo’s OUSG, and Franklin Templeton’s BENJI.
Despite its scale, distribution stays slim. Only two entities presently maintain CUMIU tokens, reflecting a restricted rollout technique.
Meanwhile, 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 regulators tread fastidiously on real-world asset (RWA) tokenization.
Earlier this week, reports emerged that the nation’s securities regulator just lately instructed native brokerages to halt RWA initiatives in Hong Kong. That steerage displays issues in regards to the velocity of digital asset adoption and an emphasis on tightening danger controls.
Tokenization permits monetary devices comparable to bonds, equities, and funds to be issued as blockchain-based tokens. In current months, Chinese institutions have used Hong Kong as a testing floor for these merchandise.
Yet 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. More than $30 billion price of RWAs at the moment are on-chain, which grew 7% up to now month.
At the identical 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.
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