On March 2nd, COINOTAG reported that Huaxia Fund (Hong Kong) unveiled the “Huaxia Hong Kong Dollar Digital Currency Fund” on February 28, 2025. This pioneering financial instrument requires a minimum investment of 10 Hong Kong dollars, 10 yuan RMB, or 1 US dollar depending on the chosen currency. Markedly, this fund is recognized as the first tokenized currency market fund in the Asia-Pacific region, specifically designed for retail investors.
Rooted in the Ethereum network, the fund currently offers only primary market subscription and redemption, with plans to advance to secondary market trading in compliance with the directives of the Hong Kong Securities and Futures Commission. Future partnerships with licensed virtual asset exchanges are anticipated to facilitate the development of secondary market products.
Huaxia’s objective with this fund is to enhance the on-chain ecosystem by introducing innovative interest-bearing tools. They aim to attract stablecoin holders and are investigating the opportunities for currency market fund tokenization across various currencies, including RMB. Notably, at least 70% of the fund’s net asset value will be allocated to secure investments such as short-term deposits, government bonds, and other approved securities as outlined by the Securities and Futures Commission’s “UT Code”.