Southern Eastern Ying first promotes the tokenization of money market funds

Hong Kong's largest ETF issuer^1^, CSOP Asset Management Limited ("CSOP") today announced a partnership with HSBC to launch a non-listed tokenized category of a money market fund, signing a memorandum of understanding with OSL to establish an exclusive collaboration for the launch of this non-listed tokenized category of the money market fund. This initiative deeply integrates traditional money market funds with the blockchain ecosystem, providing investors with a convenient, flexible, and transparent compliant "on-chain" yield option.

The newly released non-listed tokenized category is for the "CSOP Hong Kong Dollar Money Market ETF" (stock code: 3053.HK), which primarily invests in short-term deposits and high-quality money market instruments denominated in Hong Kong dollars, aiming to achieve a relatively stable Hong Kong dollar return consistent with current money market interest rates. Investors can directly hold shares of the 3053.HK fund through tokens. This product not only creates innovative tools for funds seeking risk management and stable returns "on-chain," but also serves as an asset allocation solution for cryptocurrency holders to combat the cyclical volatility of virtual assets.

HSBC, as the tokenization agent, trustee, and transfer agent for the 3053.HK non-listed tokenized category, provides core support for the tokenization issuance of the product, marking HSBC's first provision of tokenization services for money market funds in Hong Kong. The non-listed tokenized category not only effectively broadens the traditional investment channels of money market funds but also realizes many advantages based on blockchain technology, including asset ownership and a complete record and traceability of all subscription and redemption activities, as well as efficient and transparent settlement.

To further expand distribution channels beyond traditional qualified banks and brokers, CSOP today signed a memorandum of understanding with OSL. In the next six months, CSOP will collaborate exclusively with OSL's licensed virtual asset trading platform to launch this non-listed tokenized category of the money market fund, supporting investors in the subscription and redemption process.

This tripartite collaboration marks an important step in the development of the tokenization ecosystem in Hong Kong. Through HSBC's robust financial infrastructure and tokenization services, combined with OSL's Web3 business ecosystem, CSOP's traditional money market fund can achieve compliant issuance and asset management on the blockchain, while reaching a broader "on-chain" customer base.

In recent years, the market demand for tokenized assets has rapidly grown. Research reports^2^ indicate that the global asset tokenization market is expected to reach $130.67 trillion (approximately HKD 1,019.23 trillion) by 2035, with a compound annual growth rate (CAGR) of 45.83% from 2026 to 2035. Among them, the tokenization of financial assets is evolving rapidly.

At today's "CSOP's First Tokenized Product Press Conference and CSOP × OSL Memorandum Signing Ceremony," numerous leaders from the financial and digital asset industries attended the event and participated in a roundtable forum to share key trends and forward-looking insights in the field of asset tokenization.

CSOP's CEO, Ding Chen, stated: "As Hong Kong's largest ETF issuer, CSOP has always kept pace with market trends and is committed to innovation, striving to launch diversified products for investors. We are honored to partner with top players in the traditional finance and digital asset ecosystems, HSBC and OSL, to achieve the tokenization of CSOP's first money market fund, which is a key step in our strategy to enter the digital asset space. With HSBC's excellent tokenization services, CSOP's asset management strength, and OSL's business advantages in the virtual asset field, we will further open compliant and efficient tokenized asset channels for Hong Kong and international investors, meeting the diverse investment needs of the market. We look forward to working with our partners to promote the prosperity of Hong Kong's digital asset ecosystem."

HSBC Hong Kong's CEO, WU Yang Yu Ru, stated: "HSBC is honored to support CSOP in continuing to bring innovative investment products to Hong Kong investors. HSBC's fund tokenization service helps 'on-chain' ETFs achieve fragmentation and encourages more investors to take an important step in participation by lowering barriers. This service is already applied to ETFs in Hong Kong and has great potential to expand to other asset classes and different markets in the future."

Kevin Cui, Executive Director and CEO of OSL Group, stated: "The launch of this product further enriches the product portfolio that OSL offers to clients and reaffirms Hong Kong's tremendous potential in nurturing a tokenization ecosystem. With OSL's unique advantages in digital asset distribution and liquidity, we are excited to collaborate with CSOP and HSBC to open broader tokenized asset investment channels for investors. Our cooperation with CSOP is not just about launching a product; we look forward to exploring new opportunities together with our partners to bring more innovative products to the market."

As Asia's leading ETF issuer, CSOP continues to explore the integration of traditional and digital asset ecosystems, with Web3.0 being a key business strategy for the year. The company plans to launch a richer variety of tokenized fund products to inject more innovative vitality into the market.

About CSOP

CSOP Asset Management is the largest ETF/ETP issuer in Hong Kong*. As of May 29, 2026, CSOP manages assets exceeding HKD 350 billion (approximately USD 44.8 billion), benefiting from a mature ETF/ETP ecosystem, managing 68 ETFs/ETPs and 5 mutual funds in Hong Kong and Singapore. In the first quarter of 2026, 6 out of the 10 most actively traded ETFs/ETPs in Hong Kong were managed by CSOP.

Source: Bloomberg, Hong Kong Stock Exchange, CSOP, as of May 29, 2026. Based on the total asset management scale of all categories of ETFs listed in Hong Kong (including leveraged and inverse products), excluding multiple-listed ETFs. Source: Hong Kong Stock Exchange, Bloomberg, CSOP, as of March 31, 2026. Source: Bloomberg, January 1, 2026, to March 31, 2026.

About HSBC Holdings plc

HSBC Holdings plc is a founding member of the HSBC Group. The Group has offices in 56 countries and regions, serving clients globally. As of March 31, 2026, the Group's assets reached USD 3.306 trillion, making it one of the largest banks and financial services institutions in the world.

About OSL Group

OSL Group (HKEX: 863.HK) is a global stablecoin payment and trading platform dedicated to providing compliant and efficient digital financial infrastructure services worldwide, enabling any business, financial institution, and individual to achieve seamless exchange, payment, trading, and settlement between fiat and digital currencies. Rooted in the core values of "open, secure, and compliant," OSL Group is committed to building an efficient ecosystem that connects global markets, facilitating the instant, seamless, and compliant flow of global funds.

Disclaimer and Important Notice

Investing involves risks. Investors should carefully read the sales documents and product information summary related to the fund for further information, including the product features and all risk factors contained therein. The non-listed tokenized category fund units described in this document are subject to risks associated with tokenized category units, such as: blockchain technology risks, token security risks, cybersecurity risks, delay risks, reliance on service providers, regulatory risks, potential challenges in the application of existing laws, smart contract and technology risks, operational infrastructure risks, recovery and business continuity risks, and risks associated with virtual asset trading platforms (as distributors). This document is prepared by CSOP Asset Management Limited and has not been reviewed by the Securities and Futures Commission.

¹ Bloomberg, Hong Kong Stock Exchange, CSOP, as of May 29, 2026. Based on the total asset management scale of all categories of ETFs listed in Hong Kong (including leveraged and inverse products), excluding multiple-listed ETFs. ² U.S. market research firm S&S Insider report: https://www.snsinsider.com/reports/asset-tokenization-market-7430 (Forecast data is for reference only and does not represent or guarantee future actual performance)