Hong Kong’s CSOP Asset Management Ltd and UK lender HSBC are launching a tokenised money market exchange-traded fund.
According to the asset management firm, the CSOP Hong Kong Dollar Money Market ETF Unlisted Tokenised Class is its first such fund.
It allows investors to use digital tokens to invest in CSOP’s Hong Kong dollar money market fund, which invests in local dollar denominated short-term deposits and high-quality money market instruments.
“This creates an innovative tool tailored to meet on-chain demands for risk management and steady yield generation, while serving as an additional effective asset allocation solution for cryptocurrency holders seeking to hedge against the cyclical market volatility of virtual assets,” CSOP says in a statement on June 4. The launch date was not specified.
HSBC is the tokenisation agent, trustee and registrar for the ETF.
CSOP, Hong Kong’s largest ETF issuer, had HK$350 billion (US$44.8 billion) of assets under management as of end-May.
