China's asset management giant tests RWA: ChinaAMC launches a $500 million tokenized money market fund.

One of China's largest fund management companies—China Asset Management Co., Ltd. (ChinaAMC), has launched its first tokenized money market fund on Ethereum, backed by over $400 billion in Assets Under Management. This product, named ChinaAMC USD Digital Money Market Fund (CUMIU), aims to provide stable HKD-denominated returns by investing in short-term deposits and high-quality money market instruments. The fund has currently deployed approximately $502 million, making it the 11th largest tokenized product globally. Although Chinese regulators have taken a cautious stance on RWA (real-world asset) tokenization and have instructed Hong Kong brokers to suspend certain RWA initiatives, the launch by ChinaAMC signifies a continued cautious embrace of blockchain financial innovation by Chinese institutions in Hong Kong, this 'testing ground'.

CUMIU Fund Overview: Low Cost and High Value

ChinaAMC, in collaboration with the Libeara tokenization platform, has successfully launched this tokenized money market fund, showcasing its initial layout in the Web3 field.

· Product Structure and Investment Objectives

1. Product Name: ChinaAMC USD Digital Money Market Fund Class I USD (CUMIU).
2. Investment Target: Primarily invest in short-term deposits and high-quality money market instruments.
3. Target Return: Aimed at providing stable returns denominated in Hong Kong dollars (HKD).
4. Cost Advantage: The net asset value of each Token is 100 USD, with a management fee of only 0.05%, making it a low-cost option for institutions seeking exposure to Blockchain fixed income.

· Market Size and Distribution Strategy

• Assets Under Management: CUMIU has deployed approximately 502 million USD, becoming the 11th largest tokenized product by total value, although it still lags behind industry giants such as BlackRock's BUIDL and Franklin Templeton's BENJI.
• Distribution Strategy: It is worth noting that currently only two entities hold CUMIU Tokens. This selective and limited distribution strategy is considered intentional, aimed at testing Blockchain functionality, validating compliance, and addressing regulatory caution before expanding access.

Regulatory Environment and Global Momentum of RWA tokenization

As ChinaAMC launches a new fund, it coincides with Chinese regulators taking a stricter stance on RWA tokenization.

· The cautious attitude of Chinese regulators

• Hong Kong Initiative Restricted: Earlier this week, reports indicated that Chinese securities regulators have instructed local Hong Kong brokers to suspend the RWA initiative.
• Risk control is a priority: This guideline reflects the regulatory authorities' concerns about the speed of digital asset adoption and emphasizes tightening risk controls.
• Stricter verification requirements: Regulatory agencies now require stricter verification of asset-backed claims before allowing tokenized funds to further expand in scale.

· The global RWA growth momentum remains strong.

Despite facing stricter regulatory scrutiny, the launch of ChinaAMC still highlights the strong momentum of global RWA tokenization:

1. On-chain value surge: Currently, the RWA value on-chain has exceeded 30 billion USD, increasing by 7% in the past month.
2. Accelerated Adoption by Investors: The number of RWA holders increased by 9%, reaching over 406,000, indicating that investors are accelerating their adoption, which also suggests that blockchain-based finance is continuously developing worldwide.

Conclusion

ChinaAMC has launched the CUMIU fund on Ethereum, marking an important step for traditional financial giants in the wave of "real-world asset tokenization," especially against the backdrop of tightening regulations in mainland China and Hong Kong as a testing ground. This move is significant. Although the fund's distribution is currently limited, reflecting the project's cautious approach to functional testing and regulatory compliance, its scale of $500 million has already placed it among the top RWA products globally. With the continuous surge in on-chain RWA value and user numbers worldwide, ChinaAMC's practice provides a valuable case for Asian financial institutions on how to balance blockchain innovation with strict risk control.

Do you think that ChinaAMC's cautious and gradual RWA rollout strategy will become the standard model for other regulated financial institutions in Asia to experiment with blockchain innovation?