The Hong Kong-based subsidiary of Chinese financial giant China Merchants Bank (CMB) is taking a new step towards blockchain. CMB International Asset Management (CMBI) has officially tokenized its $3.8 billion money market fund on the BNB Chain, the blockchain developer announced.
The move underlines the growing interest of traditional financial institutions in blockchain technology. Through tokenization, existing investment products are converted digitally, which can improve trading, transparency and accessibility.
Collaboration strengthens digitalization of financial products
The collaboration between CMBI and BNB Chain builds on CMBI’s previous initiatives in the tokenization of real-world assets (RWA). In August, the fund was already tokenized on the Solana blockchain via the Singapore-based platform DigiFT.
According to BNB Chain, the partnership is an important milestone in bringing together traditional financial assets and blockchain technology. This partnership gives accredited investors direct, digital access to a fund with more than $3.8 billion in assets under management.
Global spread and strong growth
Launched in early 2024, the CMB International USD Money Market Fund is a sub-fund of the CMB International Open-ended Fund Company in Hong Kong. The fund invests in US dollar deposits and government-backed money market instruments in, among others, the United States, Singapore, the European Union, China, Hong Kong, Macau and Taiwan.
Figures from the Hong Kong Stock Exchange (HKEX) show that the fund has grown strongly in recent months. Assets under management increased by 24 percent: from $2.9 billion in April to $3.6 billion in August.
New tokens provide access to DeFi
With the launch on the BNB Chain, CMBI is releasing two new tokens: CMBMINT and CMBIMINT. These tokens make it possible to invest in the fund via fiat currencies or stablecoins. Investors can manage and redeem their tokens via DigiFT.
In addition, we collaborate with the infrastructure provider OnChain, so that the tokens can also be used within decentralized finance (DeFi), for example for loans or achieving returns on blockchain platforms.
Uncertainty surrounding Chinese regulations
The timing of the launch is striking. Recently, several sources reported that Chinese regulators have asked brokers in Hong Kong to temporarily pause their RWA projects.
While it is unclear whether CMBI’s tokenized fund fully fits within local regulations, this move shows that interest in blockchain is growing within the Chinese financial sector. Even in a period of stricter control, technological innovation continues.
Source: https://newsbit.nl/china-merchants-bank-brengt-miljardenfonds-naar-bnb-chain-te-midden-van-chinese-regelgeving/
