China Pacific Insurance (CPIC) Investment Management, a subsidiary located in Hong Kong of one of the largest insurance groups in China, has introduced a tokenized U.S. dollar money market fund as the trend of asset tokenization begins to extend into Asia.
The eStable Money Market Fund (MMF) was launched on the HashKey Chain, a private blockchain designed for institutional users by the digital asset firm HashKey. It reportedly raised $100 million in subscriptions on its first day, as noted in a press release on Monday.
This product is exclusively available to professional and institutional investors, focusing on U.S. dollar-denominated short-term fixed income assets and money market instruments. The PAC functions as the platform for the fund’s tokenization, while Standard Chartered Bank handles the registration and fund administration services.
Globally, asset managers are increasingly placing traditional financial instruments like government bonds, credit, and funds onto blockchain platforms, a process commonly referred to as real-world asset (RWA) tokenization. This shift aims to enhance operational efficiency and enable quicker, continuous settlements.
U.S.-based firms, such as Franklin Templeton and BlackRock, are leading the push for the tokenization of U.S. Treasury securities, creating a blockchain-based method to manage cash reserves akin to a money market fund. Recently, Fidelity Investments also applied for regulatory approval to launch a fund built on the Ethereum network. This sector is rapidly expanding: the total market value of yield-generating assets has surged by nearly 500% over the past year to approximately $4.8 billion, according to data from rwa.xyz.
“The essence of finance lies in the movement of value across time and space, and blockchain represents the new infrastructure supporting this process,” remarked Dr. Xiao Feng, chairman and CEO of HashKey Group.
“Integrating with traditional finance is a key direction for the future of Web3 development and one of the most promising pathways,” stated CG Zhou, CEO of CPIC Investment Management, emphasizing the company’s plans to tokenize additional traditional assets using compliance-oriented blockchains.