China Asset Management (Hong Kong) launched a tokenized gold exchange-traded-fund (ETF) on the Hong Kong Stock Exchange today.

The ChinaAMC Digital Gold ETF is a fully tokenized fund that tracks the LBMA Gold Price AM through full physical replication, according to its prospectus.

The physical gold will be 100% insured and held in vaults in Hong Kong, with Standard Chartered Bank acting as custodian for both the underlying bullion and the fund’s digital tokens.

Tian Gan, CEO of ChinaAMC (HK) said: “The launch of the ChinaAMC Digital Gold ETF arrives at a pivotal moment for Hong Kong.”

“By bridging traditional commodities with the Web3 ecosystem, we are actively supporting the Hong Kong Government’s vision of establishing the city as both a world-class gold trading center and a premier global hub for digital assets.”

Jerry Zhang, global head, banks & broker dealers, head of coverage, Greater China & North Asia, Standard Chartered said: “We are pleased to bring together our digital asset capabilities, including fund custody and real-world asset (RWA) tokenization, as well as our leading precious metal dealing ability, to support ChinaAMC (HK) in launching Hong Kong’s first fully tokenized gold fund, providing secure and transparent access to the fund.”

“Amid growing investor demand for gold, this launch reinforces Hong Kong’s ambition as a gold trading hub, while further strengthening the city’s position as a leading digital asset centre.”

Nelsan San, managing director & head of wealth product center at Fosun Wealth Holdings, said, “The digital gold ETF genuinely achieves a deep integration of physical gold and blockchain technology.”

“By leveraging tokenization technology, investors can access gold more conveniently with a lower entry threshold and greater transparency.”