Huaxia Fund (Hong Kong), together with Standard Chartered Bank and OSL, used the Hong Kong dollar stablecoin HKDAP to complete Hong Kong’s first digital fund subscription and redemption.
In other words: buy funds with the stablecoin, then redeem with the stablecoin—fully on-chain. Standard Chartered serves as the custodian, while OSL handles settlement.
It sounds small, but I think this step is more important than many people realize.
Previously, when buying funds, you needed to make a bank transfer, wait for T+1, and it wouldn’t work on holidays or on non-trading days. This test is meant to prove that if the underlying is switched to a stablecoin, in theory, subscriptions and redemptions can be done 24/7—buying a fund is possible even at 11 p.m. on Saturday night.
The Huaxia digital currency money market fund series has grown to $5.8 billion in Hong Kong dollars, with three currencies covered: HKD, USD, and RMB.
Along with the SEC’s five-year exemption last week for tokenized NMS stocks—these two developments move in the same direction. On one side, the U.S. allows tokenized stocks to trade on-chain via AMMs. On the other, Hong Kong is using stablecoins to buy traditional funds—traditional finance is being moved onto the blockchain piece by piece.
What the end result of this path will look like, I’m not sure yet.
But the direction is basically not in dispute.
Do you think Hong Kong’s pace is faster or slower than Singapore’s?
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#华夏基金完成港元稳定币投资用例