July 30, 2025
By Our Correspondent
This year, China has been embracing tokenization and stablecoins as the best way to counteract the sharp increase in U.S. dollar-pegged tokens. The world’s first tokenized money market fund denominated in the yuan is about to be launched by one of the biggest fund managers in the nation.
Stablecoin holders in the city-state and abroad are reportedly the objective of a new fund recently announced by China Asset Management Hong Kong (ChinaAMC HK).
“The introduction of stablecoins is something that our tokenized financial solutions are prepared for. According to local outlets, CEO Tian Gan stated, “I think we will be the first financial instrument capable of carrying interest-bearing assets linked to stablecoins if the policy can truly be implemented.”
In addition to being payment instruments, stablecoins don’t produce any income for their owners. According to Gan, these investors would be able to collect income on their holdings through the new tokenized fund without having to give up the quick liquidity that stablecoins provide.
Investors in Hong Kong will be able to access the tokenized funds through banks, authorized brokers, and digital asset exchanges; there won’t be a minimum investment amount needed. Through its subsidiary Libeara, Standard Chartered (NASDAQ: SCBFF) serves as the custodian, administrator, and tokenization agent.
According to Gan, “all financial market products will be tokenized on the blockchain” in the future, and his business hopes to be one of the first in China.
During a press conference, he stated, “The ultimate goal is to enable seamless trading 24 hours a day, seven days a week, to meet the needs of institutional and high-net-worth clients.”
With more than $400 billion in assets under management, China Asset Management Co. is the second-largest mutual fund manager in the nation. ChinaAMC HK is its Hong Kong subsidiary. For more than 20 years, it has also been the biggest ETF issuer in China.
The company is the newest behemoth aiming to lead Hong Kong’s stablecoin market, with a focus on offshore yuan. With more than 75% of all transactions handled last year, the city is the leading offshore yuan hub. Additionally, more than 60% of all offshore Yuan deposits are found there.
According to Gan, Hong Kong’s offshore yuan liquidity is expected to increase fivefold over the next five years, reaching 5 trillion yuan (US$696 billion). The demand for yuan-denominated tokenized funds will rise as a result of this increase in liquidity, which will support the expansion of stablecoins linked to the offshore renminbi.
