The Securities and Futures Commission (SFC) has approved what it describes as the world’s first secondary trading of tokenised public funds on a licensed virtual asset trading platform (VATP).

Two existing SFC-authorised tokenised money market funds began trading around the clock on 26 October.

Investors can now buy and sell the products outside traditional market hours.

The approval follows a regulatory framework introduced in April 2026 to support secondary trading of tokenised SFC-authorised funds on licensed VATPs.

Drawing on existing regulations for exchange-traded funds and VATPs, the framework sets requirements for trading operations, fair pricing, liquidity provision and investor disclosures.

These safeguards address risks associated with secondary trading, including liquidity and pricing concerns outside conventional market hours.

The SFC also sees opportunities to connect tokenised public funds with tokenised deposits. This could build on its collaboration with the Hong Kong Monetary Authority (HKMA) under Project Ensemble.

Such integration could improve settlement efficiency. It could also allow investors to transfer proceeds from tokenised asset sales instantly for other investment opportunities.

Elisa Ng, Executive Director of Investment Products at the SFC, said:

“Secondary trading of tokenised money market funds marks an important milestone in the SFC’s ongoing effort in advancing Hong Kong’s digital asset development. It puts the SFC’s regulatory framework through its paces and adds an important building block, 24/7 trading capability, to Hong Kong’s evolving tokenisation ecosystem.”

The initial rollout focuses on tokenised money market funds. The SFC will monitor trading activity and consider expanding the product scope based on market developments and experience gained.

Featured image credit: Edited by Fintech News Hong Kong, based on image by mrsiraphol via Magnific