China Asset Management Company (ChinaAMC), a prominent player in the Chinese financial landscape with over $400 billion in assets under management, has introduced a novel tokenized money market fund on the Ethereum blockchain. This strategic move by one of China’s largest fund managers underscores a growing institutional interest in leveraging blockchain technology for traditional financial instruments, even amidst a complex regulatory environment.
The newly launched fund, identified as the ChinaAMC USD Digital Money Market Fund Class I USD (CUMIU), was developed on the Libeara platform. It aims to provide stable yields denominated in Hong Kong dollars by investing in high-quality short-term deposits and money market instruments. A key feature of CUMIU is its competitive management fee, set at a low 0.05%, making it an attractive option for investors seeking cost-efficient access to money market assets.
Currently, CUMIU has already seen substantial deployment, with approximately $502 million invested. This positions it as the eleventh largest tokenized product globally based on total value locked, according to data from RWA.xyz. Despite its significant initial volume, the fund’s distribution has been intentionally restricted to just two entities during this pilot phase. This deliberate limitation suggests a focused approach on testing operational efficiency and regulatory compliance before considering broader market accessibility.
This development occurs within a broader context of evolving regulatory stances in China. While authorities have reportedly instructed local brokers to suspend certain real-world asset (RWA) tokenization initiatives in Hong Kong, the launch of CUMIU by ChinaAMC suggests that institutional innovation in this domain continues. The broader landscape of tokenized RWAs already encompasses over $30 billion on-chain, a figure that has seen a 7% increase in the past month alone. The growing ecosystem is also reflected in the expanding user base, with over 406,000 holders of RWAs, indicating a rising global appetite for blockchain-based financial solutions.
Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.