The Hong Kong Dollar and US Dollar Money Market ETF is about to launch a tokenization plan

The Hong Kong Securities and Futures Commission has recently approved an innovative tokenization currency market ETF scheme, developed in collaboration between a leading digital asset financial services group and an international asset management company. This will become the world's first tokenization currency market ETF, expected to be officially issued in April. The product deeply integrates traditional low-risk currency market funds with blockchain technology, providing on-chain investors with robust yield opportunities around the clock.

As a member of the HKMA Ensemble project working group, this digital asset financial services group will continue to work closely with regulators to promote the development of Hong Kong's tokenization ecosystem.

The upcoming issuance of tokenized shares involves two money market ETF funds, priced in Hong Kong dollars and US dollars respectively. Money market funds are known for their low risk and high liquidity, making them ideal cash management tools. Through advanced blockchain technology, these two funds have successfully achieved a combination of traditional stability and on-chain flexibility. Compared to traditional money market funds, this product enhances transparency and operational efficiency by leveraging blockchain technology, allowing investors to hold quality money market instruments directly through tokens to meet asset allocation and risk management needs. Whether DeFi investors seek yield balancing or virtual asset investors look to hedge against market volatility, these tokenized money market funds are set to become the ideal choice for on-chain investors.

With the cooperation of the Web3 ecosystem, the digital asset financial services group provides a comprehensive tokenization solution and technical support for its products, ensuring seamless integration from technology to operations. During the product tokenization process, the group's tokenization service department is responsible for designing and executing the entire issuance process; the products are then deployed on a public chain specifically designed for financial institutions and physical assets, utilizing the group's asset security management services to ensure the secure management of on-chain assets. Subsequently, a leading licensed virtual asset trading platform will serve as the main distribution channel, providing distribution and custody services through the upcoming wealth management channel.

Two trust companies serve as custodians and administrative managers for these two money market ETFs, providing administrative management services for the funds, including fund transfer registration and accounting valuation, which provides important support for the issuance of tokenized shares of the products.

The chairman and CEO of the digital asset financial services group stated: "Bringing currency market ETFs on-chain through blockchain technology is a key step for traditional finance to embrace Web3. As an important bridge connecting traditional finance and crypto finance, we have established a complete Web3 financial infrastructure. In the current trend of compliance in the market, we expect more traditional financial institutions to actively enter the crypto finance sector through innovative tokenization products. This not only will drive the development of the crypto finance market but also promote the integration of blockchain technology with the mainstream financial system, creating lasting investment value for institutional and individual investors."

As a value discoverer in investment, this international asset management company has been committed to providing professional and comprehensive asset management services for various institutions and individual investors both domestically and internationally. One of the company's key strategies is to use financial innovation to promote financial inclusion and to empower investor services through financial technology. The company's chairman and CEO stated: "This issuance is another achievement in the Web3 field following our virtual asset spot ETF, and we hope to create value for investors. As a leading asset management institution in Hong Kong, we place great importance on innovation in the financial sector and continuously explore the transformation of business models through technological advancements. We also pay close attention to the investment preferences and demands of on-chain investors and Generation Z investors. In the future, we will further summarize the experiences from this project and apply blockchain technology to more products, providing investors with more investment choices and a better investment experience."

One CEO of a trust company stated: "As a leading tokenization fund custodian, we rely on blockchain technology to assist with transfer registration services, driving the industry towards a new digital era. As the digital asset ecosystem matures, we will focus on providing efficient settlement services to create a more transparent, swift, and convenient service experience for investors, leading the value upgrade of the fund administration service industry."

The launch of this innovative tokenization currency market ETF scheme marks a further integration of traditional finance and blockchain technology, providing investors with more diversified and flexible investment options. With the continuous development of the digital asset market, we can expect more similar innovative products to emerge in the future, further promoting the digital transformation of the financial industry.