The Hong Kong subsidiary of one of the largest Chinese banks has just made history by tokenizing a colossal fund on the Binance blockchain. A bold initiative that comes in a highly tense regulatory context.
In brief
- •China Merchants Bank International (CMBI) has tokenized its 3.8 billion dollar money market fund on BNB Chain, Binance’s blockchain.
- •This tokenization allows accredited investors to access the fund via stablecoins or traditional currencies.
- •The operation follows an initial tokenization carried out in August on Solana with DigiFT.
- •The timing raises questions: recent Chinese regulatory pressures may have targeted RWA projects in Hong Kong.
Hong Kong’s CMBI bets on Binance to tokenize 3.8 billion
CMB International Asset Management is no stranger to this. Indeed, after tokenizing its US dollar denominated money market fund on Solana last August, the Hong Kong subsidiary of China Merchants Bank is doubling down with BNB Chain.
Investors can now access this investment vehicle via two tokens, CMBMINT and CMBIMINT, thus creating a bridge between traditional and decentralized finance.
The fund in question is nothing trivial. Launched in early 2024, it mainly invests in deposits and money market instruments backed by the State, covering the United States, Singapore, the European Union, and several Asian markets. Moreover, its rapid growth speaks for itself: a 24% increase between April and August, rising from 2.9 to 3.6 billion dollars in assets under management.
This expansion on BNB Chain, one of the most dynamic blockchain ecosystems in the sector, opens new prospects. Accredited investors can now use their tokenized holdings in various DeFi applications, notably for lending and yield generation.
The infrastructure provider OnChain facilitates this integration, transforming a traditional money market fund into a fully functional digital asset.
A risky bet in a freezing regulatory climate?
The timing of this announcement raises questions. Indeed, recent reports suggest that Chinese securities regulators have pressured Hong Kong brokers to suspend their real-world asset tokenization projects.
In this context, CMBI’s initiative appears as a remarkable act of defiance, or at least a demonstration of Hong Kong’s independence from Beijing.
For its part, the Hong Kong Monetary Authority, contacted by Cointelegraph, declined to comment on these alleged pressures. Furthermore, this institutional silence adds another layer of uncertainty. Therefore, the central question remains: is CMBI’s tokenized fund aligned with local regulatory frameworks, or is it navigating a legal gray area?
Nevertheless, this initiative confirms an underlying trend. Traditional financial institutions are accelerating their blockchain adoption, even in jurisdictions known for conservatism.
The choice of BNB Chain, despite Binance’s past controversies with various global regulators, reflects a growing maturity of the crypto ecosystem.
In short, the tokenization of CMBI’s fund on BNB Chain marks a turning point in the integration of real assets on blockchain. While regulatory uncertainties persist, the boldness of this initiative could well inspire other Asian financial institutions. Time will tell if Hong Kong can maintain its status as a crypto hub amid pressures from the mainland.