Chinese fundhouse Bosera Asset Management (international) and cryptocurrency exchange operator Hashkey Group said it plans to launch Hong Kong's world's first tokenized money market exchange trading funds (ETFs), highlighting the city's ambitions to become a digital asset hub.
In a statement Friday, the duo said they will add new tokenized stock classes to two existing money market ETFs: the Bosera HKD Money Market ETF and the USD Money Market ETF. ETFs approved by the Securities and Futures Commission will begin in April.
Through tokenization, rights to assets such as money market funds are converted into digital tokens that can be traded on a distributed ledger technology network. Money market funds typically invest in low-risk, short-term debt securities, such as commercial papers and Treasury bills, to provide liquidity and preserve capital while providing revenue. Money Market ETFs offer similar benefits, but in many cases there is greater trading flexibility on the stock exchange.
“[Compared with] The traditional money market fund, the product dramatically increases transparency and operational efficiency through blockchain technology, allowing investors to get a direct exposure to high-quality money market products with tokens, thereby meeting their asset allocation and risk management needs,” the company said.
