Hong Kong’s Securities and Futures Commission (SFC) launched on Monday a new regulatory framework to pilot the secondary trading of tokenized SFC-authorized investment products (tokenized products) in Hong Kong.
The move seeks to boost trading activity in the city’s expanding digital asset ecosystem over time.
“Our new framework marks another major milestone on Hong Kong’s journey to build out a fully integrated, innovative and scalable digital asset ecosystem with robust investor safeguards,” said Julia Leung, the SFC’s Chief Executive Officer.
Hong Kong’s tokenized products surge to $10.7 billion
The SFC’s new guidance aims primarily to facilitate secondary trading of tokenized SFC-authorized open-ended funds on SFC-licensed virtual asset trading platforms (VATPs), not least broadening access to regulated trading services for retail investors. However, the SFC may also consider over-the-counter secondary trading arrangements on a case-by-case basis.
Since the SFC first set out its tokenization-related regulatory framework in late 2023, product issuers in Hong Kong have been keen on tokenizing their products and the resulting market opportunities.
As of March 2026, 13 tokenized products were offered to the public in Hong Kong, with the assets under management of their tokenized classes increasing around sevenfold to $10.7 billion over the past year.
“This initiative allows a traditional securities product, once tokenized, to be traded in the evening and on weekends, and supported by the use of regulated stablecoins and tokenized deposits to facilitate round-the-clock liquidity, satisfying the demand of investors reacting to an increasingly fast-moving and uncertain market environment,” Leung added.
Read: Hong Kong grants first stablecoin licenses to HSBC, Anchorpoint Financial
New measures cover fair pricing, orderly trading, liquidity provision and disclosure
“Against this backdrop, it is an opportune time to pilot 24/7 secondary trading to further integrate tokenized products with the Web3 ecosystem through the potential use of regulated stablecoins and tokenized deposits for trading,” added the SFC.
To address the liquidity and investor protection issues of secondary trading of tokenized open-ended funds in general, and trading beyond regular trading hours of the underlying securities, in particular, new measures are built into the framework, which is drawn from the trading of exchange-traded funds and SFC-licensed VATP infrastructure. The measures cover fair pricing, orderly trading, liquidity provision and disclosure.
The initial batch of products is expected to focus on tokenized money market funds. The SFC will review its operation and consider expanding the product scope in due course.
