Chinese Company Debuts $500 Million Ethereum Tokenization Fund

China Asset Management Company (ChinaAMC), one of China’s largest fund managers with more than $400 billion in assets under management, has launched a tokenized money market fund on Ethereum.

According to data provider RWA.xyz, the new product, ChinaAMC USD Digital Money Market Fund Class I USD (CUMIU), invests in short-term deposits and high-quality money market instruments. Its objective is to deliver stable returns denominated in Hong Kong dollars.

ChinaAMC’s Fund Signals Cautious Embrace of Tokenization in China

ChinaAMC developed CUMIU through the Libeara tokenization platform. Each token has a net asset value of $100 and a management fee of just 0.05%, positioning it as a low-cost option for institutions seeking blockchain-based fixed-income exposure.

Notably, the fund has already deployed approximately $502 million, making it the 11th-largest tokenized product by total value.

ChinaAMC Tokenized Fund. Source: RWA.xyz

However, it still trails industry leaders such as BlackRock’s BUIDL, Ondo’s OUSG, and Franklin Templeton’s BENJI.

Despite its scale, distribution remains narrow. Only two entities currently hold CUMIU tokens, reflecting a limited rollout strategy.

Meanwhile, the selective distribution strategy appears intentional. ChinaAMC can test blockchain functionality and compliance by limiting early participation before broadening access and addressing regulatory caution.

The launch comes as Chinese regulators tread carefully on real-world asset (RWA) tokenization.

Earlier this week, reports emerged that the country’s securities regulator recently instructed local brokerages to halt RWA initiatives in Hong Kong. That guidance reflects concerns about the speed of digital asset adoption and an emphasis on tightening risk controls.

Tokenization allows financial instruments such as bonds, equities, and funds to be issued as blockchain-based tokens. In recent months, Chinese institutions have used Hong Kong as a testing ground for these products.

Yet regulators now want stricter verification of asset backing claims before they permit tokenized funds to scale further.

Even with tighter oversight, ChinaAMC’s launch underscores the broader momentum of tokenization. More than $30 billion worth of RWAs are now on-chain, which grew 7% in the past month.

At the same time, the number of RWA holders rose 9% to over 406,000, showing accelerating investor adoption and suggesting that blockchain-based finance continues to gain ground globally.

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