A Hong Kong-based subsidiary of a major Chinese commercial bank, China Merchants Bank (CMB), tokenized its $3.8 billion money market fund (MMF) on BNB Chain.
CMB International Asset Management (CMBI) has partnered with BNB Chain to bring its CMB International USD Money Market Fund onto its layer-1 (L1) blockchain, BNB Chain announced on Wednesday.
The partnership builds on CBMI’s real-world asset tokenization (RWA) cooperation with Singapore-based tokenization platform DigiFT, which tokenized the fund on the Solana blockchain in August.
The CMBI’s fund launch on BNB Chain came weeks after online reports suggested that China’s securities regulator had been pressuring local brokerages to pause their RWA projects in Hong Kong.
Quick fund overview
Launched in early 2024, the CMB International USD Money Market Fund is a sub-fund of the CMB International Open-ended Fund Company, which is a public umbrella open-ended fund company established in Hong Kong.
The fund primarily invests in US dollar-denominated deposits as well as state-backed money market instruments in countries or regions, including the US, Singapore, the European Union, mainland China, Hong Kong, Macau and Taiwan.
According to data from the Hong Kong Stock Exchange (HKEX), the fund has been steadily growing since its inception, with AUM adding 24% from $2.9 billion in April to $3.6 billion by August.
CMBMINT and CMBIMINT tokens deployed on BNB Chain
CMBI Asset Management’s collaboration with BNB Chain marks a milestone in bringing RWAs to one of the most active blockchain ecosystems, BNB Chain said in the announcement.
“By expanding onchain distribution, CMB International and BNB Chain are providing Accredited Investors with direct, blockchain-based access to a top-performing fund with over $3.8 billion AUM,” it added.
The collaboration brings two tokens, CMBMINT and CMBIMINT, onto the BNB blockchain, allowing investors to gain exposure to the fund using fiat currencies or stablecoins and redeem holdings via DigiFT.
The launch also involves the RWA infrastructure provider OnChain, which enables investors to use the tokens across multiple decentralized finance (DeFi) applications, such as lending and yields.
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As mainland China regulators have reportedly asked Hong Kong brokerages to halt RWA offerings, it appears to be unclear whether the tokenized CMBI fund aligns with the local regulatory ecosystem.
Approached by Cointelegraph to comment on the reported pressure from mainland China regulators, the Hong Kong Monetary Authority declined to comment.
Cointelegraph approached BNB Chain for comment regarding the issue, but had not received a response by publication.
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