Core Viewpoint - The Secretary for Financial Services and the Treasury of Hong Kong, Xu Zhengyu, stated that many asset management companies in Hong Kong are considering the opportunity to tokenize money market funds [1] Group 1 - Hong Kong asset management companies are exploring the tokenization of money market funds [1]

Market Overview - The 30-year U.S. Treasury auction was disappointing, leading to a rise in long-term Treasury yields, which pressured U.S. stocks [2] - The Nasdaq index managed to close up, boosted by the appointment of the dovish Stephen Miran to the Federal Reserve [2] - Apple shares rose by 3%, nearly recovering all losses since April 2 [2] - Eli Lilly's stock plummeted by 14% following its earnings report [2] - Bitcoin increased by 2% and Ethereum by 5% after Trump signed an executive order allowing 401K accounts to invest in cryptocurrencies [2] Key Economic Indicators - China's July exports in U.S. dollars grew by 7.2% year-on-year, while imports increased by 4.1% [4][10] - High-tech product imports and exports rose by 8.4% in the first seven months [4][10] - China's foreign exchange reserves decreased by 0.76% month-on-month in July, while the central bank has increased gold holdings for nine consecutive months [10] - The U.S. consumer inflation expectations rose to 3.1% for the next year, indicating a potential shift in the economic outlook [19] Company Performance - Semiconductor companies showed mixed results: - SMIC reported a 16.2% year-on-year increase in Q2 sales but a 19% decline in net profit [5][14] - Hua Hong Semiconductor's Q2 revenue grew by 18.3%, with a significant increase in capacity utilization [15] - Eli Lilly's Q2 revenue surged by 38% to $15.56 billion, but the stock fell 14% due to disappointing results from its oral weight-loss drug [16] - OpenAI launched its latest model, GPT-5, which is now available for free, marking a significant advancement towards AGI [4][10] Industry Trends - The AI sector is experiencing intense competition for talent, with major companies like Apple losing key personnel to competitors like OpenAI and Meta [21] - The zero-hour economy is reshaping employment, with companies like Uber and Airbnb reporting significant increases in free cash flow [22] - The semiconductor industry is under scrutiny due to potential tariffs, with companies like Intel facing pressure from the Trump administration [21]

Core Insights - The global fund tokenization market is experiencing explosive growth, with major Wall Street firms entering this emerging field [1] - Goldman Sachs reports that the asset management scale of tokenized assets reached $23 billion in the first half of the year, a 260% increase since January [1] - By 2030, tokenized funds are expected to account for 1% of global asset management, exceeding $600 billion [1] Group 1: Tokenized Money Market Funds - Tokenized money market funds are leading the innovation wave, with over 335 types of tokenized physical asset products currently operating on-chain [2] - BlackRock's BUIDL fund, in collaboration with Securitize, has surpassed $2.9 billion in assets under management, becoming the largest tokenized money market fund globally [2] - The participation of major institutions indicates a growing market demand for blockchain-native liquidity [2] Group 2: Alternative Assets and Private Equity - Tokenization of private equity and alternative assets is gaining attention, with the market projected to expand from $40 billion in 2023 to $317 billion by 2028 [3] - A PwC survey indicates that 54% of institutional investors prefer private equity as their choice for tokenized alternative investments [3] - Apollo's diversified credit fund offers tokenized private credit strategies, providing compliant investment opportunities for qualified institutions [3] Group 3: Milestones in Tokenized Money Market Funds - The collaboration between Goldman Sachs and BNY Mellon marks a significant milestone for tokenized money market funds in the U.S. [6] - This solution allows U.S. fund management companies to subscribe to money market fund shares through BNY Mellon's LiquidityDirect platform, utilizing Goldman Sachs' blockchain-based GS DAP platform [6] - The potential of tokenized funds can alleviate friction in collateral management, enhancing the value of asset classes [6] Group 4: Regulatory Environment - Global regulatory bodies are generally adopting a positive stance towards fund tokenization, creating favorable conditions for market development [7] - The Hong Kong Securities and Futures Commission approved the world's first tokenized money market ETF in April 2025, indicating strong interest in interoperable token formats [7] - The UK's 2023 fund tokenization implementation blueprint aims to improve market efficiency and transparency, with the Financial Conduct Authority supporting industry efforts [7]

Core Insights - The global fund tokenization market is experiencing explosive growth, with major Wall Street firms entering this emerging field. Goldman Sachs reports that the asset management scale of tokenized assets reached $23 billion in the first half of this year, a staggering 260% increase since January. The total market value of tokenized government bonds has reached $7.5 billion [1][4]. Group 1: Market Growth and Projections - Goldman Sachs predicts that by 2030, tokenized funds will account for 1% of the global asset management scale, exceeding $600 billion. This growth is not limited to traditional money market funds but also includes private equity and other alternative asset tokenization [1][4]. - The tokenized fund market is expected to expand significantly from $40 billion in 2023 to $317 billion by 2028, with growth concentrated in private equity, private debt, real estate, and other alternative strategies [4]. Group 2: Institutional Participation - Major institutions such as BlackRock, Fidelity Investments, and Goldman Sachs Asset Management are participating in the initial launch of tokenized money market fund solutions, indicating a growing demand for blockchain-native liquidity [2][8]. - The collaboration between Goldman Sachs and BNY Mellon to launch the first tokenized money market fund solution in the U.S. marks a significant milestone for this innovative financial instrument [1][8]. Group 3: Regulatory Environment - The global regulatory environment is becoming increasingly favorable for fund tokenization, with regulators taking a positive stance that creates conducive conditions for market development. For instance, the Hong Kong Securities and Futures Commission approved the world's first tokenized money market ETF in April 2025 [9]. - The UK's Financial Conduct Authority has supported industry efforts and recognized the potential of fund tokenization, planning to consult on guidance to support the tokenization model by Q3 2025 [9]. Group 4: Alternative Assets and Innovations - Tokenization of private equity and alternative assets is gaining attention, with 54% of institutional investors listing private equity as their preferred tokenized alternative investment [4]. - Apollo's diversified credit fund offers tokenized private credit strategies, allowing qualified institutions to invest within a compliant framework [5].