HashKey, Bosera to launch tokenized money market ETFs as part of Hong Kong's 'Project Ensemble' initiative

HashKey Group, an Asia-based crypto financial services firm, is collaborating with Bosera Asset Management to launch what they claim to be the world's first money market exchange-traded funds next month.

In a statement released Friday, the duo said they plan to launch tokenized shares for two existing money market ETFs: the Bosera HKD Money Market ETF and the Bosera USD Money Market ETF. The Hong Kong Securities and Futures Commission has approved the two tokenized ETFs.

Such tokenized ETFs are part of a larger "Project Ensemble" sandbox initiated by the Hong Kong Monetary Authority, the de facto central bank, to explore the tokenization of real-world assets.

An ETF is traditionally an investment vehicle that trades on an exchange, offering investors exposure to assets without the need to own them directly. HashKey intends to add a new tokenized share class to the two existing ETFs.

HashKey Exchange will serve as the primary distribution channel for the tokenized ETFs, "enabling investors to gain direct exposure to high-quality money market instruments by tokens," the company said. DeFi investors will then have another tool to balance their yields to mitigate market risk, the company added.

"Bringing money market ETFs on-chain through blockchain technology is a crucial step for traditional finance to embrace Web3," Xiao Feng, chairman and CEO of HashKey Group, said in the statement.

Last month, OSL, another regulated crypto exchange operator in Hong Kong, launched the tokenized mutual fund — ChinaAMC HKD Digital Money Market Fund.