New ETFs aim to bridge traditional finance and Web3 through real-world asset tokenization
Overview
HashKey Group, a leading Asia-based digital asset financial services firm, is partnering with Bosera Asset Management to launch what they claim will be the world’s first tokenized money market exchange-traded funds (ETFs). The initiative is part of Hong Kong’s “Project Ensemble”, a regulatory sandbox led by the Hong Kong Monetary Authority (HKMA) to accelerate the tokenization of real-world assets (RWAs).
The two ETFs — the Bosera HKD Money Market ETF and the Bosera USD Money Market ETF — have received formal approval from the Hong Kong Securities and Futures Commission (SFC) to issue a tokenized share class alongside their traditional structures.
This move positions Hong Kong as a global leader in merging traditional asset management and blockchain-based finance.
Tokenization Strategy and Distribution Model
Rather than launching entirely new products, Bosera and HashKey will add a tokenized share class to the existing money market ETFs. Tokenized shares will represent ownership of the underlying ETF units on a blockchain, offering improved transparency, programmability, and settlement efficiency.
The HashKey Exchange, a fully licensed virtual asset trading platform in Hong Kong, will act as the primary distribution channel for these tokenized shares.
In a joint statement, the firms said:
“Tokenized ETFs will enable investors to gain direct exposure to high-quality money market instruments via blockchain tokens, providing DeFi users with a new tool to optimize yield and manage risk.”
By integrating money market ETFs into Web3 infrastructure, HashKey and Bosera aim to offer investors access to stable, short-term fixed-income instruments, often used to hedge volatility or park idle capital in uncertain markets.
Project Ensemble and Hong Kong’s RWA Push
These tokenized ETFs are among the first products to be launched under the Project Ensemble sandbox. Led by the HKMA, Project Ensemble is designed to evaluate tokenized asset infrastructure and foster innovation in regulated environments.
The initiative aligns with Hong Kong’s broader ambition to establish itself as a global crypto and fintech hub, offering a more structured framework than jurisdictions like the U.S., where regulatory ambiguity continues to hinder digital asset innovation.
The move comes shortly after rival platform OSL launched a tokenized money market mutual fund — the ChinaAMC HKD Digital Money Market Fund — signaling rising momentum among Hong Kong’s licensed virtual asset service providers to tokenize traditional financial products.
Strategic Importance for Web3 and TradFi
Xiao Feng, Chairman and CEO of HashKey Group, emphasized the significance of the development:
“Bringing money market ETFs on-chain through blockchain technology is a crucial step for traditional finance to embrace Web3.”
Tokenized ETFs provide a compliant and capital-efficient structure for both institutional and retail investors to engage with decentralized finance (DeFi) without abandoning regulatory protections.
From an operational perspective, tokenized shares can:
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Streamline settlement via smart contracts and reduce counterparty risk
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Increase liquidity access through fractional ownership and 24/7 trading
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Enable DeFi composability, allowing ETFs to be integrated into on-chain financial applications
Investor Implications
For crypto-native investors, these tokenized ETFs offer a lower-risk on-chain product that can be used to balance yield strategies, especially amid volatile crypto markets. For traditional investors, they offer an entry point into tokenized finance without the need to manage self-custody or navigate the unregulated DeFi space.
Key takeaways:
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Regulated exposure: Backed by licensed fund managers and regulated by the SFC
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Stable yield potential: Based on underlying money market instruments, which are low-volatility assets
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Web3 integration: Positioned for future inclusion in decentralized yield protocols and token-based collateral frameworks
Conclusion
The upcoming launch of tokenized money market ETFs by HashKey and Bosera marks a significant step in bridging the gap between traditional finance and decentralized markets. Under the auspices of Hong Kong’s Project Ensemble, the initiative signals increasing regulatory support for real-world asset tokenization and positions the region as a testbed for future global standards.
With stable, yield-generating products moving on-chain, tokenized RWAs are quickly becoming one of the most tangible use cases for blockchain in financial services — and Hong Kong is aiming to lead the charge.
