Hong Kong to debut world’s first tokenized money-market funds on blockchain

In a joint statement on Friday, the companies said they would add new tokenized share classes to two existing ETFs, the Bosera HKD Money Market ETF and the USD Money Market ETF, offering a low-risk, blockchain-based investment option for both retail and institutional investors.

Approved by Hong Kong’s Securities and Futures Commission, the new share classes are set to launch in April, according to Coinpedia.

Tokenization converts the rights to an asset, such as a money-market fund, into digital tokens that can be traded on a blockchain. Money-market funds typically invest in low-risk, short-term debt instruments like treasury bills and commercial paper. ETFs offer similar benefits, including capital preservation and liquidity, with added flexibility for trading on stock exchanges.

Bitcoin ETF. Photo from X

"[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.

The launch is part of the Hong Kong Monetary Authority’s Project Ensemble sandbox, which explores how tokenization can integrate real-world assets and digital money into future financial infrastructure.

"The biggest advantages of this product are that the underlying assets are mature and high-quality, and it fully considers security and regulatory compliance while reducing investor costs and improving overall liquidity," Anna Liu, CEO of HashKey Tokenisation, a unit of the group, said in an interview with the South China Morning Post.

Tony Lu, deputy head of fixed income at Bosera, said tokenized money-market ETFs offer stable returns for on-chain investors and support the transition from traditional to blockchain-based finance.

Bosera chairman and CEO Lian Shaodong added that the firm remains focused on financial innovation and is closely monitoring the preferences of blockchain-native and Generation Z investors.

The new funds will be distributed by HashKey Exchange, a licensed virtual asset trading platform in Hong Kong.