Hong Kong to get world’s first tokenised money-market ETFs from Bosera and HashKey
Bosera HKD Money Market ETF and USD Money Market ETF, which have been approved by the SFC, are set to launch in April
Chinese fund house Bosera Asset Management (International) and cryptocurrency exchange operator HashKey Group said they plan to launch the world’s first tokenised money-market exchange-traded funds (ETFs) in Hong Kong, underscoring the city’s ambition to become a digital-asset hub.
The duo said in a statement on Friday that they would add new tokenised share classes to two existing money-market ETFs – Bosera HKD Money Market ETF and USD Money Market ETF – providing both retail and institutional investors with a low-risk, blockchain-based liquid investment option. The ETFs, which have been approved by the Securities and Futures Commission, will be launched in April.
Through tokenisation, the rights to an asset, such as a money-market fund, are converted into a digital token 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 paper and treasury bills, providing liquidity and preserving capital while offering returns. Money-market ETFs offer similar benefits but often have higher trading flexibility on stock exchanges.
“[Compared with] traditional money-market funds, this product greatly improves transparency and operational efficiency through blockchain technology, enabling investors to gain direct exposure to high-quality money-market instruments by tokens, thereby fulfilling their asset allocation and risk management needs,” the firms said.
