China Pacific Insurance (CPIC) Investment Management, a Hong Kong-based subsidiary of one of China’s largest insurance groups, has deployed tokenized US dollar money market funds as the asset tokenization trend is expanding into Asia.
The Estable Money Market Fund (MMF) was launched with Hashkey Chain, a permitted blockchain for institutional users developed by Digital Asset Group Hashkey, and secured a $100 million subscription on the first day, according to a press release on Monday.
This product is accessible only to experts and institutional investors and invests in short-term bond assets and money market products that dominate the US dollar. PAC acts as a tokenization issuing platform for funds, with standard charter banks providing registration and fund management services.
Asset managers around the world are increasingly posting traditional financial products such as government bonds, credits and blockchain rail funds. In doing so, they are trying to achieve operational and efficiency improvements in the 24-hour settlement and achieve them faster.
US-based issuers such as Franklin Templeton and BlackRock are leading the US Treasury Department’s securities tokenization efforts, as well as money market funds, as blockchain-based facilities to manage blockchain-based cash holdings. Last week, Fidelity Investments applied for regulatory approval to enter the market using funds built on the Ethereum network. This is a rapidly growing market. The total market value of achieving a yield of approximately 500% to approximately $4.8 billion over the past year is shown by RWA.XYZ data.
“The essence of finance is the flow of value across time and space, and blockchain is the new infrastructure for this process,” says Dr. Xiao Feng, chairman and CEO of Hashkey Group.
“Integration with traditional finance is an important direction for future Web3 development and one of the most certainty,” CG Zhou, CEO of CPIC Investment Management, said in a statement, adding that the company is trying to tokenize more traditional assets using a compliance-driven blockchain.
