The Securities and Futures Commission (SFC) of Hong Kong approved the first 24/7 trading of a retail tokenized money market fund (MMF). Trading of the ChinaAMC Digital Money Market Fund in USD and HKD has commenced on PantherTrade, a crypto exchange owned by Nasdaq listed digital broker Futu Holdings. The tokenized fund currently has around $660 million in assets under management, with around 16% in retail share classes, with only the Class F shares tradable on PantherTrade.
Investors no longer have to wait for subscription and redemption windows and can exit a position at any time, although there will always be a cost. Tokens cannot be withdrawn from PantherTrade and official ownership remains on the fund’s off-chain register, so this is order book trading within a closed loop rather than free movement of on-chain tokens. When the SFC announced its plans in April, it discussed settlement using tokenized deposits and stablecoins. Last month ChinaAMC (Hong Kong) started incorporating tokenized deposits into the fund itself, using HSBC’s tokenized deposit capabilities. In September the firm also completed a subscription and redemption use case using the Standard Chartered Anchorpoint regulated HKD stablecoin.
As we noted in April when exploring the trading proposal, Hong Kong benefits from its licensing regime where crypto exchanges or virtual asset trading platforms (VATPs) are allowed to trade both cryptocurrencies and tokenized securities. In many other jurisdictions the trading of securities requires a separate license.
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