The Hong Kong unit of China Asset Management (ChinaAMC), the second-largest fund firm in China, launched the world’s first renminbi-denominated tokenised money fund on Thursday.
This marks the first tokenised money market product offering exposure to renminbi assets, following growing investor interest in similar U.S. dollar-based products.
“Our tokenised products are designed to welcome the arrival of stablecoins, whether in Hong Kong dollars, renminbi, or U.S. dollars,” said Tian Gan, CEO of ChinaAMC (HK), at a press conference. His comments come ahead of Hong Kong’s new stablecoin regulations set to take effect on August 1.
Gan added that the firm aims to be among the first to offer yield-generating products tailored for stablecoin users.
Stablecoins
Stablecoins are a type of cryptocurrency typically pegged to fiat currencies like the U.S. dollar. They’re widely used by crypto traders to facilitate fast transfers between tokens while maintaining price stability.
Earlier this month, Reuters reported that China’s tech giants are lobbying the central bank to permit stablecoins in Hong Kong pegged to the offshore yuan. The goal is to promote the international use of the Chinese currency and counterbalance the growing digital dominance of the U.S. dollar.
Tokenisation refers to converting traditional assets into digital tokens, enabling faster and more efficient settlement of payments and securities trades through reduced manual processes and enhanced transparency.
U.S. dollar money market
Alongside the renminbi fund, ChinaAMC Hong Kong also launched a tokenised U.S. dollar money market fund — touted as the first of its kind in Asia. In February, the firm debuted a similar fund based on the Hong Kong dollar.
With the rise of regulated on-chain instruments such as stablecoins, tokenised deposits, and central bank digital currencies, ChinaAMC expects demand for tokenised money market funds to grow significantly in the near future.
