StanChart partners ChinaAMC for retail tokenized fund – Ledger Insights

China Asset Management Hong Kong (ChinaAMC HK) is partnering with Standard Chartered to issue one of the first tokenized money market funds (MMFs) in Asia to target retail investors. It confirmed it has received approval from the Securities and Futures Commission (SFC). The tokenized fund, which aims to launch later this month, will use Libeara, the tokenization platform incubated by StanChart’s SC Ventures.

ChinaAMC HK is a subsidiary of the mainland asset manager with more than $360 billion in assets under management. State-owned CITIC Securities is the majority shareholder. Last year the asset manager listed spot Bitcoin and Ether ETFs in Hong Kong.

Prior to the issuance of the fund, the asset manager participated in a trial as part of Hong Kong’s Project Ensemble, partnering crypto exchange OSL. It would make sense for OSL to act as distribution partner for this fund, but that has yet to be confirmed.

“Standard Chartered’s dedication to innovation and advancement in the realm of Web 3.0 aligns seamlessly with the strategic vision of China Asset Management (Hong Kong),” said Tian Gan, CEO of ChinaAMC (HK). “We thank Standard Chartered for enabling interoperability between digital and traditional markets for the Fund. Tokenized securities have the power to redefine capital markets globally, and the Fund showcases how digitization is making traditional financial products more accessible.”

Standard Chartered will act as digital asset service provider, with its trustee subsidiary as digital asset custodian. Hence, it will provide fiduciary, fund administration, custody and cash services. The bank has already rolled out digital asset custody services in the UAE and Luxembourg.

Tokenized MMFs – retail v accredited

Tokenization platform Libeara recently partnered with Wellington Management to issue a tokenized MMF in Singapore using the Ethereum blockchain. We’ve requested confirmation about which blockchain the China AMC fund will use.

The Wellington tokenized fund is only available to accredited and institutional investors, as is the UBS uMint fund, launched late last year. By contrast, ChinaAMC’s tokenized fund targets retail investors.

To date most tokenized MMFs are used by crypto institutional investors. The largest is Hashnote’s USYC ($1.14bn), where 97% is used to back the Usual stablecoin. Likewise, 40% of BlackRock’s BUIDL on Ethereum is used as collateral for Ondo’s OUSG money market fund.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}