BlackRock today announced that it has received regulatory authorisation for the BlackRock HKD Digital Liquidity fund, a Hong Kong-domiciled Hong Kong dollar money market fund designed to operate across traditional and digital financial channels.

The fund will combine blockchain technology with the established characteristics of a professionally managed money market fund, enabling eligible investors of all types to transact through traditional and on-chain channels, with the aim of enhancing efficiency, transparency and access, according to a statement by the asset manager.

The fund will support subscriptions and redemptions through both fiat and digital cash, including tokenised deposits and fiat referenced stablecoins.

At launch, the fund will be BlackRock’s first tokenised offering in Hong Kong and Asia Pacific, and the first Hong Kong domiciled money market fund to offer a constant net asset value (CNAV) to both institutional and retail investors in the local market. A CNAV fund aims to preserve capital and provide liquidity.

Susan Chan, head of APAC, BlackRock said: “We believe tokenisation has the potential to enhance how capital moves across financial markets by increasing efficiency, expanding access and enabling greater connectivity between traditional investments and digital financial infrastructure.”

“The fund builds on our global tokenisation efforts and reflects our commitment to developing innovative investment solutions that meet clients’ evolving needs while maintaining the standards of expertise, risk management, governance and investor protection that our clients around the world expect.”

Backed by BlackRock’s institutional-grade cash management, the fund seeks to provide liquidity, stability and income by investing in high-quality, short-term Hong Kong dollar money market instruments, such as government bills and deposits. The fund will add to BlackRock’s global suite of tokenised money market funds, spanning the US, Europe and Asia Pacific.

Investors will be able to use HKDAP – one of the first regulated on-chain Hong Kong dollar-backed stablecoins, issued by Standard Chartered-led Anchorpoint Financial Limited – to subscribe and redeem from the fund. This serves as the first commercial application for Standard Chartered as the bank distributor of HKDAP. Standard Chartered will also act as custodian, fund administrator and trustee of the Fund, alongside innovative digital responsibilities including tokenization.

Ole Matthiessen, global head of transaction services & digital assets, Standard Chartered, said: “This milestone reflects our belief in the transformative potential of tokenized money in the real-world economy.”

Dominic Maffei, chief executive officer and co-founder, Anchorpoint, added: “BlackRock’s decision to launch its first tokenized fund in Asia Pacific from Hong Kong reflects growing institutional conviction that digital assets are becoming an integral part of mainstream financial markets, while underscoring the strength of Hong Kong’s regulatory framework and digital asset ecosystem.”

The fund builds on BlackRock’s participation in the Hong Kong Monetary Authority’s (HKMA) Project Ensemble initiative that fosters the development of the tokenisation ecosystem, including tokenised deposits, in Hong Kong, and reflects the next step in bringing the promise of tokenised investment capabilities to accessible products.

Dan Maley, head of cash management, APAC, BlackRock said:“Cash remains a key building block for corporations, financial institutions and individuals, and the growth of digital cash and tokenized finance is creating new demand for high-quality products that can support the digital financial ecosystem. As traditional and digital markets become increasingly connected, the Fund will give all types of investors greater flexibility in how they access and use cash investment solutions.”

BlackRock’s Cash Management Group oversees nearly $1.073trn in cash strategies for a diverse range of investors, including corporations, banks, foundations, insurance companies, and public funds.