What to know:

• China Pacific Insurance (CPIC) Investment Management has introduced a tokenized U.S. dollar money market fund using the HashKey Chain, securing $100 million in subscriptions on its first day.
• This fund is designed for professional and institutional investors and focuses on U.S. dollar-denominated short-term fixed income assets.
• This initiative is part of a broader trend where asset managers are leveraging tokenization to enhance operational efficiency and expedite transactions.

China Pacific Insurance (CPIC) Investment Management, a Hong Kong subsidiary of one of China’s leading insurance groups, has rolled out a tokenized U.S. dollar money market fund as part of the increasing movement towards asset tokenization in Asia.

The eStable Money Market Fund recently launched on the HashKey Chain, which is a permissioned blockchain for institutional users developed by HashKey, and it has managed to secure $100 million in subscriptions on its opening day, according to a press release.

This product is limited to professional and institutional investors and invests in short-term fixed income assets denominated in U.S. dollars. The PAC serves as the platform for the tokenization issuance, while Standard Chartered Bank provides registration and administration services.

Globally, asset managers are increasingly turning traditional financial instruments like government bonds and funds into blockchain assets, a process known as tokenization of real-world assets (RWAs). This strategy aims to achieve greater operational efficiency and more immediate, around-the-clock settlements.

Noteworthy U.S. issuers such as Franklin Templeton and BlackRock have led efforts in the tokenization of U.S. Treasury securities, establishing blockchain facilities akin to money market funds. Recently, Fidelity Investments sought regulatory approval to introduce a fund built on the Ethereum network. The tokenized assets market is rapidly expanding, with its total market value skyrocketing nearly 500% over the past year to approximately $4.8 billion, according to rwa.xyz.

“The essence of finance is the flow of value across time and space, and blockchain is the new infrastructure for this process,” said Dr. Xiao Feng, Chairman and CEO of HashKey Group.

“Integration with traditional finance is a key direction for future Web3 development, and it is one of the most promising directions,” stated CG Zhou, CEO of CPIC Investment Management, noting that the company aims to tokenize more traditional assets with compliant blockchains.