HashKey Group and Bosera International’s Tokenized HKD and USD Money Market ETF Scheme Receives Approval from SFC
HashKey Group and Bosera International’s Hong Kong dollar and US dollar money market ETF tokenization scheme has received approval from the Hong Kong Securities and Futures Commission (SFC) and is set to be officially launched in April, making it the world’s first tokenized money market ETF.
(Background: HashKey Chain launches Staking feature, allowing HSK staking for up to 12% annual returns)
(Context: Viewpoint: The HKD stablecoin is just the prologue; RWA is the “key” to unlocking the big picture of Hong Kong’s Web3)
This article is a sponsored piece provided by HashKey Group and does not represent the views of CoinDesk, nor should it be construed as investment advice, purchasing, or selling recommendations. For more details, see the disclaimer at the end of the article.
Overview of the Tokenized ETF
HashKey Group, Asia’s leading digital asset financial services group, in collaboration with Bosera International Holdings Limited (“Bosera International”), has obtained approval from the SFC for a tokenized scheme involving HKD and USD money market ETFs, which is set to launch in April. This will be the first tokenized money market ETF globally, combining traditional low-risk money market funds with blockchain technology, thereby opening a steady income stream for on-chain investors.
As a member of the Hong Kong Monetary Authority (HKMA) Ensemble project team, HashKey Group will continue to collaborate with the HKMA and SFC to support the development of Hong Kong’s tokenized ecosystem.
Product Details
The upcoming tokenized shares involve Bosera HKD Money Market ETF Fund and Bosera USD Money Market ETF Fund. Money market funds are known for their low risk and high liquidity, making them powerful cash management tools. Bosera International has successfully integrated advanced blockchain technology with traditional stability, maintaining the robustness of traditional money funds while bestowing the flexibility of digital assets. Compared to traditional money market funds, this product enhances transparency and operational efficiency through blockchain technology, allowing investors to directly hold quality money market instruments via tokens to meet their asset allocation and risk management needs. Whether DeFi investors are seeking yield balance or virtual asset investors are looking to counter market volatility, the Bosera tokenized money market fund will serve as a “yield stabilizer” for on-chain investors.
Technical and Operational Support
Through the collaborative operation of the Web3 ecosystem, HashKey Group provides a comprehensive tokenization solution and full-chain technical support for the product, ensuring seamless integration from technology to operations. In the tokenization process, HashKey Tokenisation offers complete process design and execution for the token issuance; the product is subsequently deployed on the financial institution and RWA asset preferred public blockchain, HashKey Chain, leveraging HashKey’s NexaToken service for on-chain asset security management. The largest licensed virtual asset trading platform in Hong Kong, HashKey Exchange, will act as the main distribution channel and provide distribution and custody services through the upcoming wealth management channel.
China Merchants Yonglong Trust Co., Ltd. and Bank of China International Prudential Trust Ltd. serve as custodians and administrative managers for Bosera HKD Money Market ETF Fund and Bosera USD Money Market ETF Fund, respectively, providing essential administrative management support, including fund transfer registration, accounting, and valuation, for the issuance of the product’s tokenized shares.
Comments from Leadership
“Bringing the money market ETF on-chain through blockchain technology is a crucial step for traditional finance to embrace Web3,” said Dr. Xiao Feng, Chairman and CEO of HashKey Group. “As an important bridge connecting traditional finance and crypto finance, HashKey Group has built a complete Web3 financial infrastructure. Given the current trends in compliance, we expect more traditional financial institutions to actively enter the crypto finance sector through innovative tokenized products. This will not only drive the development of the crypto finance market but also promote the integration of blockchain technology with mainstream financial systems, creating lasting investment value for institutional and individual investors.”
As a discoverer of investment value, Bosera International has been committed to providing professional and comprehensive asset management services for various institutional and individual investors both domestically and internationally. Driving financial inclusivity through financial innovation and empowering investor services through fintech are key strategies for Bosera International.
Ms. Lian Shaodong, Chairman and CEO of Bosera International, stated, “This issuance follows our virtual asset spot ETF and is another product in the Web3 space, aimed at creating value for our investors. As a leading asset management institution in Hong Kong, we place great importance on innovation in the financial sector, continuously exploring business model transformations through technological advancements. We are also highly attuned to the investment preferences and demands of on-chain and Generation Z investors. In the future, we will further summarize our experiences from this project, applying blockchain technology to more products and providing investors with more investment options and improved investment experiences.”
Industry Insights
Mr. Luo Liwa, CEO of Bank of China International Prudential Trust, remarked, “As a leading tokenized fund custodian, Bank of China Prudential Trust leverages blockchain technology to assist with transfer registration services, propelling the industry into a new era of digitalization. As the digital asset ecosystem matures, we will focus on providing efficient settlement services to create a more transparent, rapid, and convenient service experience for investors, leading the value upgrade of fund administrative services.”
About HashKey Group
HashKey Group is a leading digital asset financial services group in Asia with a global presence. Since 2018, HashKey Group has built a global Web3 ecosystem covering Hong Kong, Singapore, Japan, Bermuda, and other regions within a high compliance regulatory framework. This includes Hong Kong’s largest licensed virtual asset exchange, HashKey Exchange, virtual asset exchange HashKey Global, a global asset management institution focused on blockchain technology and digital assets, HashKey Capital, compliant digital asset OTC services, HashKey OTC, the world’s leading Web3 infrastructure provider, HashKey Cloud, and the tokenization service provider, HashKey Tokenisation. HashKey Group also boasts a rich on-chain ecosystem, having developed the Ethereum L2, HashKey Chain, and launched the HashKey ecosystem token, HSK. HashKey Group will continue to drive the feasibility of large-scale applications of blockchain technology across multiple fields, providing trustworthy and accessible digital asset services to a billion users worldwide.
About Bosera International
Bosera International is one of the first Chinese asset management companies to operate in Hong Kong. Since its establishment, Bosera International has seized global asset allocation opportunities, adhering to a value investment philosophy, forming a comprehensive product line dominated by stable fixed-income investments, covering active equities and passive indices, and actively establishing partnerships with other international companies to provide bilateral and cross-border asset management services for global investors. Bosera International serves clients across core financial regions such as the United States, Europe, South Korea, Singapore, and Hong Kong. After 15 years in Hong Kong, Bosera International has become one of the largest Chinese asset management companies in the region.
About China Merchants Yonglong Trust Co., Ltd.
China Merchants Yonglong Trust is a wholly-owned subsidiary of China Merchants Yonglong Bank. China Merchants Yonglong Bank, a licensed bank registered in Hong Kong, formerly known as Wing Lung Bank, was established on February 25, 1933, and is one of the oldest Chinese banks in Hong Kong. Acquired by China Merchants Bank in 2008, it officially became a wholly-owned subsidiary in 2009 and was rebranded as China Merchants Yonglong Bank in 2018. China Merchants Yonglong Bank and its subsidiaries hold licenses for banking, insurance, securities, trust, and asset management, emphasizing a customer-centric approach to provide diversified products and services, maintaining influence and competitiveness in the market.
In 2024, China Merchants Yonglong Trust was granted the 13th type of regulated activity license by the Hong Kong SFC (to provide custody services for related collective investment schemes). Among the wholly-owned subsidiaries of Chinese joint-stock banks in mainland China and Hong Kong, China Merchants Yonglong Trust is the only one approved for this type of license, providing specialized services such as asset custody, fund administration, transfer agency, etc., for Hong Kong public funds, private funds, Cayman private funds, asset management accounts, and various cross-border products.
About Bank of China International Prudential Trust
Bank of China Prudential Trust has over twenty years of trust management experience, primarily providing trust and administrative services for funds and retirement protection plans, custody, as well as transfer agency and registration services. By the end of December 2024, Bank of China Prudential Trust, as a mainstream custodian for retirement plans in Hong Kong, manages MPF assets exceeding HKD 95 billion, with approximately 900,000 MPF accounts within its plans. In the third quarter of 2024, the HKMA launched the “Project Ensemble” sandbox test in collaboration with the industry, exploring the interconnectivity of tokenized mutual funds and other virtual assets via wCBDC. Bank of China Prudential Trust is deeply involved in the design and construction of asset tokenization technology, successfully tokenizing money funds in its role as fund transfer registrar and administrative manager, validating the full operational process of fund tokenization, showcasing standardized capabilities in digital asset securities services. This sandbox collaboration not only solidifies Bank of China Prudential’s leading advantage in serving fund companies, brokerages, and asset management institutions but also propels our expansion of service boundaries—future services will cover stablecoins and other diverse digital assets, extending to a broader range of institutional investors to continuously meet market innovation demands.
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