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HashKey Group and Bosera Asset Management claimed that they have launched the world’s first tokenized money market exchange-traded fund (ETF), marking a significant step in the integration of blockchain technology with traditional finance.

The new products, the Bosera HKD Money Market ETF (Tokenized Class) and the Bosera USD Money Market ETF (Tokenized Class), have received approval from the Hong Kong Securities and Futures Commission (SFC) and are set to launch in April.

The ETFs aim to improve transparency and operational efficiency by using blockchain technology, allowing investors to access money market instruments in a tokenized format. Money market funds are traditionally low-risk investments that provide liquidity for investors, making them a key tool for cash management.

The tokenized version seeks to appeal to both traditional and digital asset investors by offering an alternative to on-chain yield strategies and risk mitigation tools for virtual asset holders.‍

Blockchain Integration and Market Impact

HashKey Group, a key player in Hong Kong’s regulated digital asset sector, is part of the Hong Kong Monetary Authority’s (HKMA) Project Ensemble sandbox, which explores tokenization use cases. The firm provides the technical framework for the ETFs, including token issuance, blockchain deployment, and custody services.

The ETFs will be issued and managed on HashKey Chain, a blockchain designed for institutional and real-world asset tokenization. Additionally, HashKey Exchange, Hong Kong’s largest licensed virtual asset trading platform, will facilitate distribution and custody services via its upcoming Earn Channel.

BOCI-Prudential Trustee Limited and CMB Wing Lung (Trustee) Limited have been appointed as fund custodians, handling administration, valuation, and transfer agent services.‍

Regulatory and Industry Significance

The introduction of tokenized ETFs aligns with Hong Kong’s broader strategy of positioning itself as a leader in regulated digital asset finance. As regulatory frameworks for digital assets continue to develop, financial institutions are exploring tokenization as a method to modernize traditional financial instruments.

This launch follows Bosera’s previous entry into the digital asset space with its Virtual Asset Spot ETF. The firm stated that its focus remains on financial innovation and exploring blockchain applications in investment products.