Hong Kongs SFC Greenlights First-ever Tokenised Money Market ETFs

The ETFs – Bosera HKD Money Market ETF and Bosera USD Money Market ETF – have been approved by the Hong Kong Securities and Futures Commission (SFC) and will be formally launched in April, HashKey said.

CMB Wing Lung (Trustee) Limited and BOCI-Prudential Trustee Limited will act as the custodians and administrators for the Bosera HKD Money Market ETF and Bosera USD Money Market ETF, respectively, it said.

“Bringing money market ETFs on-chain through blockchain technology is a crucial step for traditional finance to embrace Web3,” said Dr. Xiao Feng, Chairman and CEO of HashKey Group.

“Under the current market trend of compliance, we expect more traditional financial institutions to actively enter the crypto finance sector through innovative tokenisation products,” he said.

Feng said this will not only drive the development of the crypto finance market, but also promote the integration of blockchain technology and mainstream financial systems, creating sustainable investment value for institutional and individual investors.

Lian Shaodong M.H., Chairman and CEO, Bosera Asset Management (International) Co., Limited, said one of Bosera International’s key strategies is to leverage financial innovation to promote financial inclusion and empower investor services through financial technology.

“This issuance is our latest product in the Web 3.0 sector, after our Virtual Asset Spot ETF, and we hope to create value for investors,” she said.

Hong Kong’s tokenised ETFs

The ETFs are one of the use cases in the Hong Kong Monetary Authority’s (HKMA’s) Project Ensemble Sandbox, which explores innovative tokenisation of real-world assets (RWAs).

Money market funds are known for their low risk and high liquidity, making them an essential tool for cash management.

In comparison to traditional money market funds, the tokenised money market ETFs will greatly improve transparency and operational efficiency through blockchain technology, HashKey said.

This will also enable investors to gain direct exposure to high-quality money market instruments by tokens, thereby fulfilling their asset allocation and risk management needs, it said.