Ethereum Tokenization: ChinaAMC Launches $500M Money Market Fund

TLDR

• ChinaAMC has launched a $500 million Ethereum tokenized money market fund called CUMIU.
• The fund invests in short-term deposits and high-quality money market instruments.
• CUMIU aims to provide stable returns denominated in Hong Kong dollars.
• The fund charges a low management fee of 0.05% and has a net asset value of $100 per token.
• Only two entities currently hold CUMIU tokens, reflecting a selective distribution strategy.
• ChinaAMC developed the fund using the Libeara tokenization platform on Ethereum.

China Asset Management Company (ChinaAMC) has launched a tokenized money market fund on Ethereum. This fund, named ChinaAMC USD Digital Money Market Fund Class I USD (CUMIU), is valued at over $500 million. It invests in short-term deposits and high-quality money market instruments. The fund aims to deliver stable returns denominated in Hong Kong dollars.

Ethereum Tokenization Gains Traction with New Product

ChinaAMC developed CUMIU using the Libeara tokenization platform. The token has a net asset value of $100, with a low management fee of 0.05%. According to data provider RWA.xyz, CUMIU targets institutional investors seeking blockchain-based fixed-income exposure. Despite its scale, the product trails industry leaders like BlackRock’s BUIDL and Franklin Templeton’s BENJI.

However, CUMIU’s distribution remains narrow. Only two entities currently hold the tokens, indicating a limited rollout strategy. ChinaAMC seems to have adopted this selective distribution to test blockchain functionality and ensure compliance. The company plans to widen access once the testing phase is complete.

Regulatory Environment Remains a Key Challenge

The launch of CUMIU coincides with heightened regulatory scrutiny over real-world asset (RWA) tokenization in China. Chinese authorities have issued guidelines for stricter verification of asset backing before permitting tokenized funds to scale. Earlier this week, reports revealed that China’s securities regulator instructed local brokerages to halt RWA initiatives in Hong Kong.

Despite these challenges, ChinaAMC’s Ethereum tokenization product signals broader momentum in the space. More than $30 billion worth of RWAs are now on-chain, with a 7% growth in the last month. This surge reflects growing adoption of blockchain-based finance, as the number of RWA holders increased by 9% to over 406,000.

With its Ethereum tokenization fund, ChinaAMC joins a growing list of global institutions embracing blockchain technology.

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