- HashKey and Bosera launched the first tokenized money market ETFs, approved by Hong Kong SFC.
- The ETFs enhance transparency and liquidity using blockchain under HKMA’s Project Ensemble Sandbox.
- HashKey Exchange will list the ETFs, with custody managed by CMB Wing Lung and BOCI-Prudential.
HashKey Group and Bosera Asset Management have launched the world’s first tokenized money market exchange-traded funds (ETFs). The Bosera HKD Money Market ETF (Tokenized Class) and Bosera USD Money Market ETF (Tokenized Class) were approved by the Hong Kong Securities and Futures Commission and will go live officially in April. ETFs enable blockchain technology to combine with traditional finance, enhancing transparency and liquidity.
The ETFs are among the Hong Kong Monetary Authority’s (HKMA) Project Ensemble Sandbox projects that aim to explore tokenization of real-world assets. The HKMA and SFC worked with HashKey Group, a member of the sandbox, to develop Hong Kong’s tokenized ecosystem. To provide secure on chain asset management, it leverages HashKey Chain, a public blockchain favored by financial institutions.
Tokenization Enhances Transparency and Efficiency
Bosera’s tokenized ETF products provide an alternative to traditional money market funds that have the benefit of having a very low risk and high liquidity. Blockchain technology increases transparency, making it possible to track net asset value (NAV) in real time and instant settlements. This provides investors direct access to high-quality money market instruments, in tokenized form and optimises investments and risk management strategies.
The ETFs are designed to attract different types of investors. Decentralized finance (DeFi) users seeking yield stabilization and virtual asset investors looking to mitigate market volatility can benefit from these tokenized products. HashKey’s NexaToken service ensures secure management of on-chain assets, while the HashKey Exchange, Hong Kong’s largest licensed virtual asset trading platform, serves as the primary distribution channel.
Institutional Collaboration and Compliance Framework
The tokenized ETFs operate within a regulatory-first framework. For the Bosera HKD Money Market ETF and Bosera USD Money Market ETF, the custody services are provided by CMB Wing Lung (Trustee) Limited and BOCI-Prudential Trustee Limited, respectively. These firms handle fund administration, transfer agency and valuation services to maintain compliance and operational integrity.
HashKey Group plays a key role in developing Web3 financial infrastructure. Dr. Xiao Feng, Chairman and CEO of HashKey Group, stated that tokenizing money market ETFs is a crucial step in integrating blockchain with traditional finance. He emphasized that compliance-driven financial institutions are increasingly adopting blockchain solutions to expand the digital asset market.
Bosera Asset Management highlighted its focus on financial innovation through blockchain technology. Bosera International Chairman and CEO Lian Shaodong M.H. said the company also seeks to apply blockchain implementations to more investment products. She added that there is a growing demand for digital solutions, especially from younger investors and institutional clients who are looking for diversified portfolio.
BOCI-Prudential Trustee Limited also contributed to the project by integrating blockchain into fund administration processes. CEO Andrew Law stated that using blockchain for transfer agency and registry services enhances efficiency, transparency, and convenience for investors.
The tokenized ETFs are expected to play a role in Hong Kong’s broader efforts to become a leader in financial technology. The Hong Kong Monetary Authority’s Project Ensemble, which focuses on interbank settlements using wholesale central bank digital currency (wCBDC), aligns with the expansion of tokenized financial products. HashKey and Bosera’s collaboration signals a shift towards blockchain-based investment products in the regulated financial sector.
