The global financial landscape is undergoing a transformative shift, with stablecoins emerging as a cornerstone of the evolving digital asset ecosystem. As regulatory frameworks mature—particularly in key markets like Hong Kong—traditional financial institutions are increasingly integrating blockchain-based solutions into their offerings. Among the most active players are fund subsidiaries, which are not only preparing for the stablecoin revolution but actively shaping it through product innovation, talent development, and strategic collaboration.
Regulatory Clarity Fuels Stablecoin Adoption
Stablecoins, digital assets pegged to stable reserves such as fiat currencies or short-term government securities, have gained widespread traction due to their ability to combine the efficiency of cryptocurrencies with the stability of traditional money. Their appeal lies in bridging the gap between decentralized finance (DeFi) and conventional finance, enabling faster settlements, lower transaction costs, and broader financial inclusion.
Recent regulatory advancements have significantly boosted market confidence. Notably, the Hong Kong Legislative Council’s passage of the Stablecoin Ordinance Bill—set to take effect on August 1, 2025—establishes a robust licensing framework requiring stablecoin issuers to maintain 1:1 reserves in high-liquidity assets. The framework also explores the inclusion of the Chinese yuan, positioning Hong Kong as a potential tri-currency (HKD, USD, CNY) stablecoin hub on-chain.
This regulatory clarity has catalyzed institutional interest. For example, Guotai Junan International’s recent upgrade of its Securities and Futures Commission (SFC) license now permits direct trading of virtual assets like Bitcoin and stablecoins on its platform. The announcement triggered a surge in fintech and blockchain-related ETFs, reflecting strong investor appetite for compliant digital asset exposure.
Fund Subsidiaries Spearhead Innovation in Digital Assets
Amid this momentum, several mainland Chinese fund subsidiaries operating in Hong Kong are at the forefront of digital innovation. These firms are leveraging their regulatory proximity and financial expertise to test and deploy next-generation financial products.
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China Asset Management (Hong Kong) has been particularly proactive. The firm participated in multiple government-led sandbox initiatives, including the Stablecoin Sandbox, Project Ensemble, and the e-HKD+ Pilot, exploring use cases such as stablecoin issuance, cross-border payments, asset tokenization, and fund subscription/redemption via digital currencies.
Through partnerships with major institutions like the Hong Kong Monetary Authority (HKMA), HSBC, Visa, and ANZ Bank, China Asset successfully completed end-to-end testing of on-chain payments and tokenized fund transactions. In early 2025, its CEO Gan Tian revealed that the company had collaborated with a potential stablecoin issuer—among early participants like Circle Innovation Technology, JD Blockchain, and Standard Chartered—to submit a cash management solution to the HKMA. Discussions with regulators remain ongoing.
“Once SFC regulations are fully implemented, we plan to enable investors to subscribe to and redeem funds using compliant stablecoins,” said Zhu Haokang, Head of Digital Assets and Family Wealth at China Asset Management (Hong Kong). “This integration could significantly expand our asset management scale by attracting tech-savvy investors seeking seamless access to traditional financial products.”
Expanding Into Tokenized Funds and Retail Markets
Beyond stablecoin experimentation, these fund houses have already launched real-world products that bring blockchain benefits to retail investors.
In April 2024, six spot crypto ETFs debuted in Hong Kong, marking a pivotal moment for institutional crypto adoption. Among them:
- Bosera Funds (International) launched the Bosera Bitcoin ETF and Bosera Ethereum ETF.
- China Asset Management (Hong Kong) introduced the ChinaAMC Bitcoin ETF and ChinaAMC Ethereum ETF.
- Harvest Fund International rolled out the Harvest Bitcoin ETF and Harvest Ethereum ETF.
These ETFs hold actual Bitcoin and Ethereum reserves and support both cash and in-kind subscriptions—allowing investors to exchange crypto directly for ETF shares—available through licensed Hong Kong brokers.
Even more groundbreaking was China Asset Management (Hong Kong)’s February 2025 launch of Asia’s first retail tokenized money market fund denominated in Hong Kong dollars. This product brings Real World Assets (RWA) on-chain, offering retail investors fractional ownership and instant settlement. It represents a major step toward democratizing access to institutional-grade financial instruments.
Bosera Funds (International), in collaboration with HashKey Group, also received SFC approval in March 2025 for tokenized HKD and USD money market ETFs, further signaling the industry’s shift toward digital-native financial infrastructure.
Building Talent and Infrastructure for the Future
To sustain this pace of innovation, fund subsidiaries are aggressively recruiting talent with expertise in blockchain, fintech, and virtual assets.
Bosera recently advertised for a Virtual Asset Product Manager, seeking candidates with at least three years of experience in crypto, blockchain, or digital payments. Key responsibilities include:
- Designing and launching virtual asset products
- Managing full product lifecycles
- Researching global market trends and regulatory developments
- Developing comprehensive product architectures covering investment, custody, clearing, payment, and yield distribution
Meanwhile, China Asset Management (Hong Kong) established a dedicated digital assets team in 2024 during its initial crypto ETF rollout. The unit spans product development, investment management, operations, compliance, and legal functions—ensuring holistic support for digital initiatives.
Looking ahead, the firm plans to expand its tokenized fund series, enable secondary trading on regulated platforms, and explore settlement using digital currencies such as stablecoins and the digital Hong Kong dollar (e-HKD).
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Core Keywords
- Stablecoin
- Tokenized Funds
- Real World Assets (RWA)
- Hong Kong Virtual Asset Regulation
- Crypto ETF
- Digital Asset Innovation
- Fund Subsidiaries
- Blockchain Finance
Frequently Asked Questions
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the US dollar, Hong Kong dollar, or gold. It combines blockchain efficiency with price stability.
Q: Why are fund subsidiaries interested in stablecoins?
A: Stablecoins enable faster settlements, reduce transaction costs, and open new avenues for investor access—especially for cross-border fund subscriptions and redemptions using digital currencies.
Q: What are tokenized funds?
A: Tokenized funds represent traditional financial assets (like mutual funds or ETFs) converted into digital tokens on a blockchain. They allow for fractional ownership, 24/7 trading, and automated compliance.
Q: Are stablecoins safe?
A: Regulated stablecoins—especially those subject to regular audits and 1:1 reserve requirements—are considered low-risk. However, investors should verify issuer transparency and regulatory compliance.
Q: Can retail investors access tokenized funds in Hong Kong?
A: Yes. China Asset Management (Hong Kong) launched Asia’s first retail tokenized money market fund in 2025, available to individual investors through compliant platforms.
Q: How do crypto ETFs work?
A: Spot crypto ETFs hold actual cryptocurrencies like Bitcoin or Ethereum. Investors can buy shares through traditional brokers without managing private keys, combining crypto exposure with familiar investment vehicles.
With regulatory frameworks solidifying and institutional adoption accelerating, the convergence of traditional finance and digital assets is no longer speculative—it's operational. As fund subsidiaries continue to innovate through stablecoins and tokenization, they are not just adapting to change—they're leading it.