CMB International (CMBI), a prominent Asia-based asset manager under the Chinese bank Merchants paper, has tokenized its HK-Singapore Mutual Recognition Fund on the Solana blockchain. The tokenized unit, CMBMINT, was launched by DigiFT and OnChain, providing distribution and technical support.
CMB International (CMBI) is an asset manager that incorporates blockchain technology in fund distribution and related activities.
Solana, a high-performance Layer 1 blockchain, is utilized for issuing, transferring, and executing corporate actions with sub-second finality, near-zero fees, and parallelized execution.
DigiFT is a Singapore-based regulated company specializing in trading tokenized securities and facilitating KYC/AML-compliant investor onboarding.
OnChain is an infrastructure provider offering support for tokenization processes, registry logic, and operational tools.
The tokenization of the HK-Singapore mutual recognition fund by CMB International on the Solana blockchain, represented by CMBMINT, marks a significant milestone in combining traditional finance with blockchain technology. DigiFT and OnChain played crucial roles in this pioneering initiative, making it the first public Solana-based mutual fund.
Solana’s speed and affordability, processing 65,000 transactions per second, make it an ideal platform for tokenization, providing investors with quick and cost-effective access to funds.
Support in Tokenization provided by DigiFT and OnChain
DigiFT and OnChain support the tokenization of real assets, assisting CMB International in launching CMBMINT. This collaboration underscores the growing institutional confidence in blockchain finance.
The fund is based on the HK-Singapore Mutual Recognition of Funds initiative established by the CSRC and SFC in 2015, facilitating cross-border fund investments exceeding $20 billion. Tokenization under this framework enhances liquidity and accessibility.
Significance for Asian Financial Markets
CMB International’s initiative sets a benchmark in Asia’s asset management sector, showcasing blockchain’s role in fund distribution. This move could influence future projects in the industry.
Why Choose Solana for Fund Replenishment?
Scale and speed: Solana’s ability to process tens of thousands of transactions per second with minimal latency enables high-frequency operations such as NAV adjustments and corporate actions.
Cost efficiency: Solana offers predictable and cost-effective transactions, reducing frictions in processes like compliance checks and unit transfers.
Programmability: Smart contracts on Solana allow for embedded compliance, time-based locks, role-based permissions, and automated distribution logic.
On-chain lifecycle: Solana supports KYC/AML processes, primary and secondary transfers, redemptions, and corporate actions, all within a secure whitelist of wallets.
Future Possibilities
Fractionalization & Market Access: Tokenization enables smaller investment sizes and programmable ownership, expanding access to a wider investor base within compliant structures.