China Asset Management Company (ChinaAMC), a major fund manager in China with over $400 billion in assets, has introduced a tokenized money market fund on Ethereum.
As per data from RWA.xyz, the new offering, ChinaAMC USD Digital Money Market Fund Class I USD (CUMIU), focuses on short-term deposits and high-quality money market instruments, aiming to provide stable returns in Hong Kong dollars.
ChinaAMC’s Fund Signals Cautious Embrace of Tokenization in China
ChinaAMC created CUMIU using the Libeara tokenization platform. Each token has a net asset value of $100 and a minimal management fee of 0.05%, making it an affordable choice for institutions interested in blockchain-based fixed-income investments.
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Importantly, the fund has already allocated roughly $502 million, placing it as the 11th-largest tokenized product by value.
However, it still lags behind industry giants like BlackRock’s BUIDL, Ondo’s OUSG, and Franklin Templeton’s BENJI.
Despite its size, distribution is limited, with only two entities currently holding CUMIU tokens, indicating a conservative rollout approach.
Meanwhile, this selective distribution strategy appears deliberate. ChinaAMC can evaluate blockchain functionality and regulatory compliance by restricting initial participation before expanding access and addressing regulatory concerns.
The launch occurs as Chinese regulators proceed cautiously regarding real-world asset (RWA) tokenization.
Earlier this week, reports indicated that the country’s securities regulator had directed local brokerages to cease RWA projects in Hong Kong, citing worries over the rapid adoption of digital assets and a focus on reinforcing risk management.
Tokenization enables financial instruments like bonds, equities, and funds to be issued as blockchain-based tokens. Recently, Chinese institutions have been utilizing Hong Kong as a testing hub for these initiatives.
However, regulators are now demanding stricter verification of asset backing claims before allowing further growth of tokenized funds.
Despite increased scrutiny, ChinaAMC’s initiative highlights the ongoing momentum in tokenization. Over $30 billion worth of RWAs are currently on-chain, marking a 7% increase in the past month.
Additionally, the number of RWA holders grew by 9% to exceed 406,000, indicating rising investor interest and suggesting that blockchain-based finance continues to progress globally.
