International Tokenization of HK-Singapore Recognition Fund on Solana Network by CMB International
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In a groundbreaking move that combines conventional finance with blockchain technology, CMB International (CMBI) has tokenized its HK-Singapore mutual recognition fund and listed it on the Solana blockchain as CMBMINT. This marks the first time such a fund has been tokenized in the public domain.
Solana, known for its sub-second finality, near-zero fees, and parallelized execution, is capable of processing 65,000 transactions per second and more than 65 million transactions daily. This speed and low cost profile make it an ideal choice for the issuance, transfer, and corporate actions of the tokenized fund.
The tokenization process was assisted by DigiFT and OnChain, two Singapore-based companies that specialize in tokenization and infrastructure provision respectively. DigiFT, a regulated company that trades in tokenized securities, offers KYC/AML-compliant onboarding of investors. OnChain assists with tokenization flows, registry logic, and operational tooling.
The use of Solana for the tokenized fund offers several benefits. It allows for fractionalization and market access, opening up opportunities to a wider investor base with compliant structures. Interoperable RWA opportunities exist on Solana, allowing the formation of on-chain portfolios with other tokenized instruments such as T-Bills, MMFs, bond funds, etc.
One of the key advantages of this tokenization is real-time, cross-border settlements. Blockchain enables faster, borderless settlement processes, reducing friction and operational delays present in conventional fund transactions. Moreover, the Solana network's smart-contract rails allow for embedded compliance, time-dependent locks, role-based permissions, and automated distribution logic.
The alliance between CMB International, DigiFT, and OnChain indicates an increasing institutional confidence in blockchain finance. This initiative bridges traditional finance with blockchain by tokenizing existing fund shares without creating new share classes, targeting accredited investors.
Analysts see potential growth in Total Value Locked (TVL) on blockchains hosting tokenized real-world assets, encouraging wider adoption of RWA tokenization. The use of advanced liquidity mechanisms and multi-modal subscription/redemption features could enhance trading volumes and investor engagement across blockchains.
The HK-Singapore Mutual Recognition of Funds scheme, initiated in 2015 by the CSRC and SFC, has facilitated interstate investment in funds to the tune of more than 20 billion dollars. The success of this scheme underscores the potential for tokenized funds to drive broader integration between traditional finance and blockchain technology.
References:
[1] CMB International Press Release, 2022 [2] DigiFT Press Release, 2022 [3] OnChain Press Release, 2022 [4] Solana Labs, 2022 [5] Blockchain Research Report, 2022
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