China Merchants Bank Launches $3.8 Billion MMF Fund on BNB Chain

A subsidiary of a major Chinese commercial bank based in Hong Kong, China Merchants Bank (CMB), has successfully tokenized its $3.8 billion money market fund (MMF) on the BNB Chain.

CMB International Asset Management (CMBI) has teamed up with BNB Chain to launch its CMB International USD Money Market Fund on the layer-1 (L1) blockchain, as announced on Wednesday.

This partnership builds on CBMI’s real-world asset tokenization (RWA) collaboration with Singapore’s DigiFT, which tokenized the fund on the Solana blockchain back in August.

The launch of CMBI’s fund on BNB Chain follows online reports suggesting that China’s securities regulator has been pressuring local brokerages to pause their RWA initiatives in Hong Kong.

Quick fund overview

The CMB International USD Money Market Fund was launched in early 2024 as a sub-fund of the CMB International Open-ended Fund Company, a public umbrella fund company established in Hong Kong.

The fund primarily invests in US dollar-denominated deposits and state-backed money market instruments in regions including the US, Singapore, the European Union, mainland China, Hong Kong, Macau, and Taiwan.

According to data from the Hong Kong Stock Exchange (HKEX), the fund has experienced steady growth since its inception, with AUM increasing 24% from $2.9 billion in April to $3.6 billion by August.

CMBMINT and CMBIMINT tokens launched on BNB Chain

The partnership between CMBI Asset Management and BNB Chain signifies a significant advancement in bringing RWAs to one of the most dynamic blockchain ecosystems, as noted in the announcement by BNB Chain.

“By expanding on-chain distribution, CMB International and BNB Chain are offering Accredited Investors direct, blockchain-based access to a top-performing fund boasting over $3.8 billion AUM,” the announcement indicated.

This collaboration introduces two tokens, CMBMINT and CMBIMINT, on the BNB blockchain, enabling investors to access the fund using fiat currencies or stablecoins and redeem holdings through DigiFT.

The launch also involves OnChain, an RWA infrastructure provider, allowing investors to use the tokens across various decentralized finance (DeFi) applications, including lending and yield farming.

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With mainland China regulators reportedly requesting Hong Kong brokerages to suspend RWA offerings, it is uncertain whether the tokenized CMBI fund is in alignment with the local regulatory framework.

Asked by Cointelegraph for comments regarding the reported pressure from mainland regulators, the Hong Kong Monetary Authority opted not to provide a statement.

Cointelegraph also reached out to BNB Chain for comments on the matter but did not receive a response before publication.