China Asset Management Company (ChinaAMC) launches a tokenized money market fund on Ethereum, investing in short-term deposits and money market instruments to deliver stable returns in Hong Kong dollars. The fund, named CUMIU, has a net asset value of $100 and a low management fee of 0.05%.

With $502 million deployed, ChinaAMC’s CUMIU is the 11th-largest tokenized product by total value, though it trails industry leaders like BlackRock’s BUIDL and Franklin Templeton’s BENJI. Distribution remains limited, with only two entities currently holding CUMIU tokens.

ChinaAMC’s selective distribution strategy allows for testing blockchain functionality and compliance before broadening access. The launch aligns with Chinese regulators’ cautious approach to real-world asset tokenization, as recent reports indicate a halt on RWA initiatives in Hong Kong to tighten risk controls.

Tokenization of financial instruments like bonds and equities is gaining momentum, with Chinese institutions using Hong Kong as a testing ground. Regulators seek stricter verification of asset backing claims for tokenized funds to scale further, as over $30 billion worth of RWAs are now on-chain.

Despite regulatory oversight, ChinaAMC’s tokenized fund launch highlights the growing momentum of tokenization, with $30 billion worth of RWAs on-chain and a 9% increase in RWA holders to over 406,000. Blockchain-based finance is gaining traction globally, accelerating investor adoption.

Read more at Yahoo Finance: Chinese Company Debuts $500 Million Ethereum Tokenization Fund