JunHe assisted Hong Kong fintech company KN Group to launch the industry’s first on-chain tokenized fund, with consumer loans as its underlying assets. The launch aims to advance the development of its Real-World Asset (RWA) tokenization.
As a promoter of inclusive finance in emerging markets including Thailand, the Philippines, Indonesia, Pakistan and Mexico, KN Group will conduct a shelf offering of USD 100 million in tokenized consumer finance assets. This RWA will expand funding sources for the underlying assets, significantly enhance asset liquidity, stability and capital efficiency, and open new channels for global capital market asset allocation. It also creates more possibilities for the development of traditional consumer finance business and prospects for RWA tokenization.
JunHe provided legal support to KN Group for the fund’s establishment and assisted in drafting the tokenization contract and the cash loan finance documents. We demonstrated our legal expertise in the Web3 market and the RWA tokenization fields and earned high trust and praise for our consistently efficient, meticulous and professional work.
Lucas Kong, General Manager of KN Group Hong Kong and Global Head of Treasury at KN Group, stated: “This global debut is a major milestone following KN Group’s decade of deep cultivation in AI fintech. It successfully bridges traditional financial services with the global capital markets through digital pathways. This initiative explores a replicable path for onboarding traditional consumer financial assets onto the blockchain, granting investors greater transparency, flexibility, and investment efficiency. Through financial asset tokenization, we aim to better serve global investors. Moving forward, we aspire to achieve further breakthroughs in setting new industry standards, unlocking fresh asset value, and connecting global emerging ecosystems, continuing our strides in innovative finance.”
This deal was led by JunHe partner LIN, Jiayu (Paul), with the support of QIAO, Zheyuan (Jacqueline) in drafting the tokenization-related legal contracts. WANG, Weiwei provided legal support in the fund establishment, and partners ZHOU, Jingbo and ZHOU, Hui (Nelson) drafted the cash loan finance documents.