- •China Merchants Bank (CMB) tokenized its $3.8 billion money market fund on BNB Chain, allowing accredited investors blockchain-based access.
- •The move expands real-world asset offerings with CMBMINT and CMBIMINT tokens, compatible with multiple DeFi applications.
- •The initiative follows CMBI’s earlier cooperation with DigiFT on Solana, demonstrating growing interest in using blockchain for institutional fund distribution despite regulatory uncertainties in Hong Kong and mainland China.
China Merchants Bank (CMB), one of China’s leading commercial banks, is entering the blockchain space with a major tokenization project. Its Hong Kong-based subsidiary, CMB International Asset Management (CMBI), has launched its $3.8 billion USD Money Market Fund on BNB Chain, offering investors direct on-chain access to a top-performing fund. The initiative leverages smart contract automation and token standards, making investment and redemption processes faster and more transparent for global investors.
TOKENIZATION EXPANDS BLOCKCHAIN ACCESS FOR INVESTORS
The initiative allows accredited investors to gain exposure through CMBMINT and CMBIMINT tokens, which can be purchased using fiat or stablecoins. These tokens also integrate with decentralized finance (DeFi) applications, including lending platforms and yield-generating protocols, thanks to infrastructure support from OnChain. The fund’s deployment on BNB Chain is part of CMBI’s broader strategy of leveraging blockchain to streamline fund distribution, following earlier tokenization work with Singapore-based DigiFT on Solana in August. This move highlights how tokenized funds can bridge traditional finance with digital ecosystems, creating new liquidity channels and innovative investment solutions for international participants.
FUND OVERVIEW HIGHLIGHTS GROWTH AND GLOBAL REACH
Launched in early 2024 as a sub-fund of the CMB International Open-ended Fund Company, the money market fund primarily invests in US dollar-denominated deposits and state-backed instruments in the US, Singapore, EU, mainland China, Hong Kong, Macau, and Taiwan. Its assets under management (AUM) have steadily increased from $2.9 billion in April to $3.6 billion by August, according to Hong Kong Stock Exchange data, reflecting strong investor demand. Experts note that integrating Real-World Assets (RWAs) on public blockchains improves transparency, auditability, and compliance, potentially influencing other institutional players to explore similar tokenization strategies.
While the tokenization represents an innovative use of blockchain for institutional finance, regulatory questions remain. Reports indicate that mainland China regulators have asked local brokerages in Hong Kong to pause real-world asset offerings, creating uncertainty about alignment with current rules.
CMBI’s launch on BNB Chain highlights the growing adoption of blockchain technology for large-scale fund management, opening new possibilities for global investors and setting a benchmark for future institutional tokenization projects.