China's CPIC Launches $100M Tokenized Fund with HashKey as Real-World Asset Trend Grows in Asia

Asset tokenization is a rapidly growing sector in the crypto space, with asset managers worldwide increasingly using blockchain technology for traditional assets such as bonds and funds.

Key Points:

• China Pacific Insurance (CPIC) Investment Management launched a tokenized U.S. dollar money market fund on the HashKey Chain, raising $100 million in subscriptions.

• The fund invests in U.S. dollar-denominated short-term fixed income assets and money market instruments, accessible to professional and institutional investors.

• This move reflects a growing trend of asset managers tokenizing traditional financial instruments on blockchain technology for enhanced operational efficiency and faster settlements.

China Pacific Insurance (CPIC) Investment Management, a Hong Kong-based subsidiary of one of China’s largest insurance groups, launched a tokenized U.S. dollar money market fund as the asset tokenization trend grows in Asia.

The eStable Money Market Fund (MMF) debuted on the HashKey Chain, a permissioned blockchain created by HashKey for institutional users, and raised $100 million in subscriptions on its first day, as stated in a press release on Monday.

This product is available only to professional and institutional investors, investing in short-term fixed income assets and money market instruments denominated in U.S. dollars. The PAC serves as the tokenization platform for the fund, while Standard Chartered Bank oversees registration and fund administration.

Asset managers globally are increasingly moving traditional financial instruments like government bonds, credit, and funds onto blockchain platforms, a practice known as the tokenization of real-world assets (RWAs). This transition aims to improve operational efficiency and enable quicker, round-the-clock settlements.

Issuers in the U.S., such as Franklin Templeton and BlackRock, are at the forefront of tokenizing U.S. Treasury securities, using blockchain technology to manage cash holdings similarly to a money market fund. Recently, Fidelity Investments also sought regulatory approval to launch a fund on the Ethereum network. This market is growing rapidly, with the value of yield-generating assets increasing by almost 500% over the past year to nearly $4.8 billion, according to rwa.xyz data.

Dr. Xiao Feng, chairman and CEO of HashKey Group, commented, "The essence of finance is the flow of value across time and space, and blockchain is the new infrastructure for this process."

CG Zhou, CEO of CPIC Investment Management, added, "Integration with traditional finance is a key focus for future Web3 development and one of the most certain directions," stating that the company aims to tokenize more traditional assets using compliance-driven blockchains.