Hong Kong To Launch First Tokenized Retail Currency Fund In Asia-Pacific

According to PANews, the Hong Kong Securities and Futures Commission (SFC) is set to introduce the first tokenized retail currency fund in the Asia-Pacific region by the end of this month. The SFC's Chief Executive, Leung Fung-yee, stated that discussions with the Hong Kong Monetary Authority (HKMA) under the Ensemble project have highlighted the potential of tokenizing real-world assets, particularly money market funds, due to their efficient subscription and redemption processes. Several other tokenization applications, including retail products and money market funds, are currently under review. Leung also revealed that the SFC has established an industry advisory group for licensed Virtual Asset Trading Platform (VATP) operators, with plans to release a development roadmap in the near future. Currently, the SFC is processing nine valid applications and has reiterated that there is no cap or target for licensing. In addition to virtual asset trading platforms, the SFC will assist the Financial Services and the Treasury Bureau in developing a regulatory framework for virtual asset custody and over-the-counter (OTC) trading, with a public consultation expected later this year.