In a notable advancement for traditional finance and blockchain integration, China Merchants Bank’s Hong Kong subsidiary has successfully tokenized a $3.8 billion money market fund (MMF) on the BNB Chain. This move signifies a significant step towards bringing real-world assets (RWA) onto blockchain platforms, expanding access for institutional and accredited investors within a regulated environment, amidst ongoing discussions about crypto regulation in China.
- •China Merchants Bank (CMB) tokenizes its $3.8 billion money market fund on BNB Chain, blending traditional finance with blockchain technology.
- •The fund, launched in early 2024, invests mainly in USD deposits and state-backed instruments across the US, Singapore, EU, and Greater China.
- •This initiative follows previous tokenization of the same fund on the Solana blockchain, highlighting a multi-chain approach to asset digitization.
- •It introduces on-chain trading of fund tokens (CMBMINT and CMBIMINT), enabling exposure through fiat, stablecoins, and DeFi platforms.
- •The project operates amidst regulatory uncertainty, with Chinese authorities reportedly urging Hong Kong brokerages to slow RWA projects, raising questions about compliance.
Traditional Asset Meets Blockchain Innovation
A strategic partnership between CMB International Asset Management (CMBI) and BNB Chain has marked a significant milestone in the digitization of traditional finance. The Hong Kong-based subsidiary of China Merchants Bank tokenized its flagship USD Money Market Fund on BNB Chain, a leading layer-1 blockchain. This fund, with a total asset under management (AUM) of over $3.8 billion, offers a bridge between conventional investment products and the rapidly evolving world of crypto and DeFi.
The fund, launched in early 2024, primarily invests in US dollar deposits and government-backed instruments in regions including the US, Singapore, the European Union, and Greater China. Data from the Hong Kong Stock Exchange show progressive growth, with AUM increasing by 24% from $2.9 billion in April to $3.6 billion in August. This steady expansion underscores strong investor confidence in the fund’s performance and stability.
RWA Tokenization on Multiple Blockchains
Building on its previous tokenization efforts on the Solana blockchain via DigiFT, CMBI has expanded its RWAs onto BNB Chain, a highly active ecosystem that offers broad on-chain liquidity and DeFi integration. The move involves two new tokens, CMBMINT and CMBIMINT, which represent stakes in the fund and facilitate on-chain trading, allowing investors to access the fund using fiat, stablecoins, and digital assets.
This initiative benefits from OnChain’s infrastructure, enabling token holders to leverage their assets across decentralized finance applications like lending and yield farming, further integrating traditional assets into the DeFi space. BNB Chain highlighted that this decentralization of access aims to provide accredited investors with direct, blockchain-based exposure to a reputable fund with a robust asset base.
However, the integration occurs in a complex regulatory landscape. Authorities in mainland China have reportedly advised Hong Kong brokerages to pause real-world asset projects, raising doubts over the compliance of the tokenized CMBI fund with local securities regulations. Efforts to obtain comments from the Hong Kong Monetary Authority and BNB Chain on these regulatory issues have yet to yield definitive responses.
As traditional finance embraces blockchain innovation, this case exemplifies the ongoing efforts to digitize assets within a regulated framework — albeit amid uncertainties surrounding crypto regulation and cross-border compliance in Asia.