Hong Kong-based Value Partners has revealed its plans to tokenise approximately 3 tons of physical gold, valued at around $201 million at the current market rates.

The decision follows a surge in gold prices, reaching an all-time high of $2,150 on certain platforms in December 2023, resulting in a 14% gain, according to TradingView data.

Secure Storage

The precious metal, securely stored in a Hong Kong facility fully owned and operated by the Hong Kong Airport Authority, is the subject of Value Partners' tokenization ambitions.

Shande Zhao, a representative of the company, discussed these plans in an interview with Hong Kong Commercial Daily.

Zhao also expressed Huili Group's broader interest in exploring ETFs related to virtual assets and tokens, aligning with the evolving landscape of the cryptocurrency market and the establishment of regulatory frameworks.

Hong Kong's Attitudes Towards Crypto

Hong Kong's Securities and Futures Commission (SFC) and its Monetary Authority (HKMA) have indicated their intent to assess crypto ETFs, responding to the growing demand for these investment products.

Unlike the approach of the United States Securities and Exchange Commission (SEC), which reportedly favors only in-cash models, Hong Kong's financial regulators have approved both in-cash and in-kind subscriptions.

Hong Kong authorities have published guidelines outlining the oversight of companies' operations in this space.

Additionally, the region has introduced stablecoin regulations to facilitate retail investments, requiring issuers to obtain a special license.

However, details regarding provisions for algorithmic stablecoins were not disclosed.