CSOP Asset Management has rolled out Hong Kong’s first tokenised money market ETF, marking a new step in the city’s push to link traditional finance with blockchain-based products.
The unlisted tokenised class of the CSOP Hong Kong Dollar Money Market ETF (stock code 3053.HK) allows subscriptions and redemptions via digital tokens, rather than solely through conventional fund dealing channels. The move brings tokenisation directly into a regulated, cash-like product aimed at short-term parking of capital.
Structure and strategy of the ETF
The underlying fund invests mainly in Hong Kong Dollar-denominated short-term deposits and high-quality money market instruments. Its objective is to deliver returns in line with prevailing money market rates while maintaining capital stability.
The tokenised class offers traders a way to gain exposure to on-chain yield generation through an instrument that remains rooted in conventional money market assets and regulatory oversight.
HSBC’s role in tokenisation and custody
HSBC will serve as tokenisation agent, trustee and registrar for the ETF, providing its first full suite of digital asset-related services to a money market fund in Hong Kong.
The bank’s infrastructure will be used for blockchain-based record-keeping, transaction traceability and more efficient settlement, with the goal of combining familiar fund governance with the operational advantages of distributed ledger technology.
Exclusive tie-up with OSL for trading and operations
CSOP has signed a memorandum of understanding with OSL Group, under which it will use OSL’s licensed virtual asset trading platform exclusively for six months to handle subscriptions and redemptions in the new tokenised share class.
The arrangement is designed to broaden access beyond traditional distributors and signals rising collaboration between regulated financial institutions and digital asset platforms. OSL, listed in Hong Kong under code 863, provides digital financial infrastructure including payment and trading services to enterprises and institutions.
Tokenisation market growth and Hong Kong’s ambitions
The launch comes against a backdrop of rapid global growth in tokenised real-world assets. Research firm S&S Insider projects the global asset tokenisation market could reach USD 130.67 trillion (about HKD 1,019.23 trillion) by 2035, with a forecast compound annual growth rate of 45.83 percent between 2026 and 2035.
Tokenised real-world assets worldwide reached more than USD 24 billion in total value by February 2026, up 266 percent during 2025. In Hong Kong, assets under management in tokenised products grew roughly sevenfold over the past year to about USD 1.4 billion by March 2026.
Regulators in Hong Kong have put in place rules that not only permit tokenised products, but also allow their secondary trading on licensed virtual asset platforms. Recent approvals turn what were once buy-and-hold instruments into tradable assets, with the potential for near round-the-clock liquidity supported by regulated stablecoins and tokenised deposits.
Strategic push into web3 and digital products
For CSOP, the tokenised money market ETF is part of a wider digital strategy. The firm plans to extend its range of tokenised products and incorporate Web3.0 applications across its fund line-up.
According to HKEX and Bloomberg data, CSOP managed more than HKD 350 billion (USD 44.8 billion) in assets as of May 2026. Its business spans 68 ETFs or ETPs and five mutual funds listed or offered in Hong Kong and Singapore.
HSBC, which had total assets of USD 3.306 trillion as of March 31, 2026, serves clients in 56 countries and territories. Its involvement as custodian and infrastructure provider for the tokenised ETF is seen as a key step in addressing counterparty and operational risks that have weighed on parts of the digital asset market.
Market impact and what traders are watching
The main shift for market participants is the ability to hold a regulated, interest-bearing money market instrument directly on a blockchain. This structure offers a more transparent and potentially more efficient alternative to traditional cash management products, while maintaining oversight from established institutions.
In the coming weeks, traders in digital markets are expected to monitor liquidity in the tokenised share class on licensed platforms. Early trading volumes and the tightness of bid-ask spreads will provide initial signals of demand and of how well the new secondary trading framework performs.
Regulators have indicated that money market funds will serve as the first test case for tokenised products. If the model proves successful, tokenised bonds or equities are likely to be the next step, broadening the spectrum of on-chain instruments available to the market.
Risk considerations for tokenised funds
All tokenised fund classes carry risks related to blockchain operations, cybersecurity, regulatory changes and potential service disruptions. Those considering participation are urged to review the ETF’s prospectus and key facts statement for full details of risk factors.
Increasing convergence of traditional finance and blockchain
The collaboration between CSOP, HSBC and OSL underscores a broader trend: tokenisation is moving from speculative corners of the digital asset world into core, regulated financial products.
By placing a money market ETF on-chain and wrapping it in established governance, custody and trading structures, Hong Kong is positioning itself as a key hub for the next phase of digital market development, where blockchain-based instruments function as integrated components of the mainstream financial system.
Explore how tokenised ETFs connect TradFi and Web3—learn more in this guide to tokenized equities.
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