Yunfeng Financial Completes First RWA Tokenization of Fund Investment Shares

Yunfeng Financial Group Limited (00376.HK) announced September 17 that its wholly-owned subsidiary successfully completed tokenization of investment shares in a Fund of Funds through Real-World Asset tokenization technology. The initiative represents the company's first independently executed RWA project, converting traditional fund shares into digital tokens on blockchain infrastructure. 

The tokenized FOF fund focuses primarily on alternative assets, including direct and indirect investments in credit and real estate-related debt securities markets. The company issued a portion of the fund's investment shares in tokenized form to provide investors with enhanced transparency and accessibility.

Yunfeng Financial Group trades on the Hong Kong Stock Exchange under code 376.HK and operates as an innovative financial technology platform. The company's major shareholders include Yunfeng Financial Holdings Limited and Massachusetts Mutual Life Insurance Company, one of the top five life insurance companies in the United States. The group's subsidiaries hold Type 1, 4, and 9 licenses from the Hong Kong Securities and Futures Commission, while its controlling stake in YF Life Insurance International Limited provides a long-term insurance business license from the Hong Kong Insurance Authority.

Company executives positioned the tokenization project as part of Hong Kong's broader virtual asset development initiative. The group stated the RWA issuance enhances efficiency and accessibility of traditional fund investments while exploring innovative models under compliant conditions. Hong Kong has been actively promoting linkage between virtual assets and the real economy as an international financial center. 

RWA tokenization converts physical assets such as real estate, fund shares, or commodities into digital tokens through blockchain technology, enabling asset fractionalization, improved liquidity, and optimized transaction efficiency. The practice has gained traction globally as financial institutions seek to bridge traditional finance with blockchain infrastructure.

Yunfeng Financial plans to use this initial issuance as a pilot program, gradually exploring tokenization solutions for additional asset categories. The company intends to collaborate closely with regulatory authorities, technology partners, and financial institutions to build a more comprehensive digital asset ecosystem. The group aims to leverage its Web2 financial foundation while embracing Web3 blockchain technology to create what it calls a "next-generation Web 3 financial services ecosystem."