Chinese Company Debuts $500 Million Ethereum Tokenization Fund

Group 1 - China Asset Management Company (ChinaAMC) has launched a tokenized money market fund on Ethereum, named ChinaAMC USD Digital Money Market Fund Class I USD (CUMIU), with over $400 billion in assets under management [1] - The fund aims to deliver stable returns in Hong Kong dollars and has already deployed approximately $502 million, making it the 11th-largest tokenized product by total value [2][3] - The fund utilizes the Libeara tokenization platform, with each token having a net asset value of $100 and a low management fee of 0.05%, appealing to institutions seeking blockchain-based fixed-income exposure [2] Group 2 - The distribution of CUMIU tokens is currently limited to two entities, reflecting a cautious rollout strategy that allows ChinaAMC to test blockchain functionality and compliance [3] - Chinese regulators are exercising caution regarding real-world asset (RWA) tokenization, recently instructing local brokerages to halt RWA initiatives in Hong Kong due to concerns about digital asset adoption and risk controls [4][5] - Despite regulatory challenges, the launch of CUMIU indicates a growing momentum for tokenization, with over $30 billion worth of RWAs on-chain, which has increased by 7% in the past month, and the number of RWA holders rising by 9% to over 406,000 [6]