A subsidiary of China Merchants Bank (CMB) in Hong Kong has announced the tokenization of its $3.8 billion money market fund (MMF) on the BNB Chain.

CMB International Asset Management (CMBI) has teamed up with BNB Chain to launch the CMB International USD Money Market Fund on its layer-1 (L1) blockchain. This initiative builds on previous efforts with Singapore’s DigiFT, which successfully tokenized a similar fund on Solana in August.

The launch follows reports suggesting Chinese regulatory bodies are urging local brokerages to freeze their RWA initiatives in Hong Kong.

Fund Overview

Launched in early 2024, the CMB International USD Money Market Fund is part of a public open-ended fund company established in Hong Kong. It focuses on investing in US dollar-denominated deposits as well as state-backed money market instruments across regions including the US, Singapore, the EU, mainland China, Hong Kong, Macau, and Taiwan.

AUM of CMB International USD Money Market Fund from April 2025. Source: HKEX

According to data from the Hong Kong Stock Exchange (HKEX), the fund has experienced steady growth since its inception, with assets under management (AUM) increasing from $2.9 billion in April to $3.6 billion by August, marking a 24% rise.

Tokens Developed for BNB Chain

The partnership with BNB Chain signifies a key step in integrating RWAs into a leading blockchain environment. CMBI and BNB Chain aim to provide accredited investors with direct blockchain-based access to a high-performing fund with over $3.8 billion in AUM.

The integration introduces two tokens, CMBMINT and CMBIMINT, which will allow investors to interact with the fund using fiat or stablecoins and facilitate redemptions through DigiFT.

Also involved in this launch is the RWA infrastructure provider OnChain, facilitating the use of the tokens across various DeFi platforms for lending and yields.

As the situation evolves, it remains uncertain whether the tokenized CMBI fund adheres to local regulations, especially considering the Chinese regulators’ requests for Hong Kong brokerages to pause RWA offerings.

Inquiries aimed at the Hong Kong Monetary Authority regarding the regulatory pressure from mainland China received no response.