Mirae Asset Global Investments, Citi Investor Services, and OSL Group have launched a tokenised unit class for the Global X HSCEI Covered Call Active ETF, available in both Hong Kong and US dollars.
According to the firms, this is the first instance of a Hong Kong call ETF introducing a tokenised unit class.
Global X HSCEI Covered Call Active ETF references the Hang Seng China Enterprises Index.
The class will be recorded and represented on a blockchain network through digital tokens, with each one corresponding to one tokenised fund unit.
Citi says it will continue to support Global X ETFs with trustee, custody, fund administration, and broader ETF services, along with transfer agency for the covered call ETF’s tokenised unit class.
OSL’s Hong Kong Securities and Futures Commission (SFC)-licensed virtual asset trading platform will support the fund’s tokenised launch.
Regarding the initiative, Dennis Fok, co-CEO and chief investment officer, ETF at Mirae Asset Global Investments (Hong Kong), says: “Global X's covered call strategy provides investors with a relatively stable source of income, while tokenisation transforms the way investors hold and transact fund units.
“We are delighted to partner with Citi and OSL to bring Hong Kong's first covered call ETF into the blockchain era and deliver a more efficient investment experience for investors.”
David Brown, Japan, Asia North, and Australia financial institutions sales co-head, Services at Citi, comments: “Citi is proud to collaborate with Global X ETFs and OSL on this milestone launch in Hong Kong, reflecting our shared commitment towards innovation and the development of local capital markets.”
Terrence Pu, senior vice president of OSL Exchanges, OSL Group, adds: “What tokenisation changes is how efficiently fund income and units can be held, transferred and settled.
“This collaboration also marks a step in diversifying OSL's product offering, providing clients more flexibility in capital allocation and investment management.”
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