Hong Kong Introduces New Framework for Tokenized Investment Products

Hong Kong's Securities and Futures Commission (SFC) has unveiled a new regulatory framework to facilitate secondary market trading of tokenized SFC-recognized investment products. According to Foresight News, the framework aims to enable tokenized open-ended funds to be traded on SFC-licensed virtual asset trading platforms, expanding regulated trading services available to retail investors. The SFC will also consider allowing over-the-counter secondary market trading on a case-by-case basis. By March 2026, 13 tokenized products have been offered to the public in Hong Kong, with the total value of assets under management for tokenized category shares increasing to approximately HKD 10.7 billion over the past year. The new initiative allows traditional securities products to achieve round-the-clock trading after tokenization and plans to provide liquidity through regulated stablecoins and tokenized deposits. SFC CEO Julia Leung described the new framework as a significant milestone in building a digital asset ecosystem, with the first batch of products expected to primarily consist of tokenized money market funds.