China’s $400B Sovereign Fund Drops Yuan-Pegged Digital Token—A Direct Challenge to Dollar Dominance
Beijing just fired its loudest shot in the currency wars—with blockchain as the weapon.
The $400 billion China Investment Corporation (CIC) unveiled its first yuan-backed digital token today, accelerating the country's multi-year campaign to dethrone the US dollar. No more hiding behind SWIFT reforms or BRICS rhetoric—this is programmable money designed for cross-border trade settlements.
Why it matters: The token launches as China's Belt and Road partners increasingly settle trades in yuan (up 300% since 2020). Unlike stablecoins, this government-issued asset reportedly allows programmable features like expiration dates—perfect for enforcing capital controls while pretending to embrace decentralization.
The kicker: Wall Street banks are already scrambling to support the asset, proving once again that finance will lick any boot if there's a basis point to be earned. Meanwhile, the Fed's 'digital dollar' project remains stuck in committee purgatory—classic bureaucratic speed versus China's top-down execution.
China’s Tokenized Yuan Fund Fuels Digital Shift and De-Dollarization
Revolutionary China Tokenized Yuan Launch
China Asset Management Hong Kong, which is actually a subsidiary of China’s second-largest fund manager with over $400 billion in assets, has officially launched this pioneering tokenized money market fund. The ChinaAMC blockchain fund addresses the yield gap in stablecoin holdings and it’s also supporting China’s de-dollarization push in a big way.
Tian Gan, CEO of ChinaAMC Hong Kong, stated:
Strategic Digital Yuan Investment Opportunity
This China tokenized yuan fund launch actually coincides with Hong Kong’s stablecoin ordinance, which is creating new digital yuan investment pathways right now. The tokenized money market fund enables 24/7 trading while supporting China’s de-dollarization push through yuan-based digital assets, and this timing couldn’t be better.
Matthew Chan, head of product and investment solutions at Citic Securities Brokerage Hong Kong, said:
Even more interesting is that banks, qualified brokers, and digital asset exchanges in Hong Kong will make the fund available to investors, and it has no minimum investment requirement.
Market Impact and Future Projections
The ChinaAMC blockchain fund targets Hong Kong’s dominant position in offshore yuan trading, which handles over 75% of global transactions. This China tokenized yuan innovation supports broader digital yuan investment strategies, and it’s being positioned as a game-changer.
Gan projected significant growth, stating:
The tokenized money market fund operates through Standard Chartered’s subsidiary Libeara as custodian and tokenization agent, ensuring institutional-grade security for this groundbreaking China de-dollarization push initiative. At the time of writing, this represents the most ambitious China tokenized yuan project launched to date.
