Futu & ChinaAMC Launch Tokenized Money Market Funds in Web3 Push

Futu Group has partnered with China Asset Management (Hong Kong) to launch tokenized money market fund products. This move marks a significant step into the Web3.0 space for both firms. Futu will act as the exclusive broker for the initiative. The funds will be available in Hong Kong dollars, Chinese yuan, and U.S. dollars. 

The Hong Kong dollar product is already live on Futu’s platform. The U.S. dollar version is expected to roll out later this week. The firms plan to integrate on-chain and off-chain services. A dual-track subscription and redemption system is in the works. This setup aims to support 24/7 trading and real-time settlements.

Moving Toward Seamless Blockchain Finance

Futu’s Managing Director Zeng Yuchao shared ambitious plans. Once the system supports stablecoins, users will be able to hold or use them as platform balances. They’ll also be able to buy stocks directly using stablecoins.

Behind the scenes, Futu Group will manage fiat clearing and settlements. The goal is to shorten transaction cycles and improve user experience. Zeng said the company aims for a “seamless” transition between digital assets and traditional investments. The ultimate vision is to offer full-time, real-time access to tokenized financial products.

ChinaAMC Sees Strong Start

Gan Tian, CEO of ChinaAMC (Hong Kong), said the new funds already show promise. The tokenized Hong Kong dollar fund has surpassed HK$1 billion in value. He expects modest growth at first. 

But as adoption increases, transaction fees should drop, and returns will remain comparable to traditional funds. Gan also highlighted the added convenience of tokenized markets. He believes 24/7 trading will lead to smoother, more efficient investing.

Stablecoins Expected to Boost Demand

Gan believes stablecoins will start with cross-border payments but will evolve quickly. As financial demand grows, tokenized funds will be key. These new fund products could act as interest-bearing instruments for stablecoin holders. 

This could attract more users to Web3 investing. Zeng echoed this sentiment. He emphasized Futu’s mission to become a one-stop digital investment platform.

The Bigger Picture

This partnership reflects a broader trend in finance. Traditional institutions are embracing blockchain to upgrade outdated systems. Tokenized money market funds combine the stability of fiat with blockchain speed. If adoption continues, it could reshape how everyday users access and manage investments.

The project also aligns with Hong Kong’s growing interest in digital assets. Regulators and financial firms are working together to build secure blockchain infrastructure. For now, Futu and ChinaAMC have taken the first step. But with U.S. dollar products on the way and stablecoin support in development, more innovation is on the horizon.