CSOP launches tokenised HKD money-market ETF class

CSOP Asset Management launched the first tokenised share class of the CSOP Hong Kong Dollar Money Market ETF (3053.HK) at a press event in Hong Kong. HSBC will act as tokenisation agent, trustee and registrar. OSL will onboard the unlisted tokenised class exclusively through its SFC-licensed virtual asset trading platform for an initial six-month period under a memorandum of understanding signed at the launch.

The tokenised share class converts holdings in the underlying money market fund into digital tokens recorded on a blockchain. The tokens are unlisted and will not trade on a public securities exchange; investor access and any secondary trading are expected to be handled through compliant digital-asset platforms and intermediaries.

The underlying fund mainly invests in HKD-denominated short-term deposits and high-quality money market instruments. Its objective is to deliver returns in Hong Kong dollars in line with prevailing money market rates.

HSBC will provide the technical and fiduciary infrastructure for the token issuance, including token creation, custody-related functions and record-keeping. CSOP noted this is the first time HSBC has provided full digital-asset services for a money market fund in Hong Kong. Under the MoU, OSL will support subscription and redemption processes and onboard investors via its VATP for six months.

CSOP said the tokenised class offers blockchain features such as immutable records of ownership, traceable transaction histories, faster settlement and transparent record-keeping. The firm also highlighted fractionalisation as a potential way to reduce the entry point for smaller investors.

CSOP cited market research projecting the global asset tokenisation market could reach about USD130.67 trillion by 2035, with an estimated compound annual growth rate of roughly 45.83% from 2026 to 2035. Representatives from CSOP, HSBC and OSL took part in event panels on asset tokenisation and distribution.

Ding Chen, chief executive of CSOP, described the partnership as a combination of the three firms’ capabilities to provide tokenised access to investors. Maggie Ng, chief executive of HSBC Hong Kong, noted the tokenisation service enables ETF shares to be brought on-chain and allows fractionalisation. Kevin Cui, chief executive of OSL Group, added the offering broadens OSL’s product range and supports development of a tokenised ecosystem in Hong Kong.