The Hong Kong Special Administrative Region arm of the Chinese mainland's second-largest fund firm China Asset Management on Thursday rolled out the world's first renminbi-denominated tokenized money fund.

This is the first tokenized money market product giving exposure to renminbi-denominated assets, after rising demand for similar products based on US dollar funds.

"Our tokenized products are designed to welcome the arrival of stablecoins, whether it is Hong Kong dollars, renminbi or US dollar," said Tian Gan, CEO of ChinaAMC HK at a press conference, referring to the HKSAR's new stablecoin rules poised to take effect on Aug 1.

The firm aims to become among the first to offer yield-generating products catering to stablecoin users, Gan added.

Stablecoin is a type of cryptocurrency designed to maintain a constant value, and it is usually pegged to a fiat currency such as the US dollar and is commonly used by crypto traders to move funds between tokens.

Tokenization turns traditional assets into digital tokens, enabling the creation of a digital central bank system that settles payments and securities trades faster and more cheaply by reducing manual checks.

The company also launched a tokenized US dollar money market fund, calling it the first such offering in Asia. The fund firm in February rolled out a similar product based on the Hong Kong dollar.

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The HKSAR's unit expects demand for such funds to keep rising in the near future, as regulated on-chain money such as regulated stablecoins, tokenized deposits and central bank digital currencies become more widespread.