The Securities and Futures Commission (SFC) launched a new regulatory framework to pilot the secondary trading of tokenised SFC-authorised investment products (tokenised products) in Hong Kong. This particular move aims to boost trading activity in the city’s expanding digital asset ecosystem over time.

The framework primarily covers secondary trading of tokenised SFC-authorised open-ended funds on SFC-licensed virtual asset trading platforms (VATPs), including broadening regulated trading access to retail investors. The SFC may also consider over-the-counter arrangements on a case-by-case basis.

As of March 2026, 13 tokenised products were offered to the Hong Kong public, with assets under management in their tokenised share classes growing around sevenfold over the past year to HK$10.7 billion. Julia Leung, the SFC’s Chief Executive Officer, shared,

“This initiative allows a traditional securities product, once tokenised, to be traded in the evening and on weekends, and supported by the use of regulated stablecoins and tokenised deposits to facilitate round-the-clock liquidity, satisfying the demand of investors reacting to an increasingly fast-moving and uncertain market environment.”

The initial batch of eligible tokenised products will focus on tokenised money market funds, with the SFC reviewing performance before considering any expansion of scope.

Product issuers and intermediaries, including SFC-licensed VATPs, are encouraged to consult or notify the regulator before launching activity under the new framework.

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