Updates with details from SFC announcement. Adds comments from SFC CEO Julia Leung.
Hong Kong issued guidance to allow for the secondary trading of tokenized
authorised open-ended funds on licensed platforms, expanding access of the digital assets to retail investors.
The Securities and Futures Commission (SFC) introduced a new regulatory
framework for the tokenized products in a bid to spur trading in virtual assets. The moves follow the introduction of tokenized money market funds last year.
Previewing the announcement at the Web3 Festival conference in the city, Eric Yip, executive director at the SFC called it a "first of its kind framework." The SFC said in a circular dated 20 Apr that it may also consider over-the-counter secondary trading arrangements on a case-by-case basis.
Several major asset managers have released their tokenized funds under the supervision of the SFC and the Hong Kong Monetary Authority (HKMA),
including the ChinaAMC HKD Digital Money Market Fund, which was the first
retail-approved tokenized fund in the Asia-Pacific region.
The initial batch of traded products is expected to be tokenized money market funds. The SFC said it will consider expanding the product scope after reviewing the operation of the first cohort.
As of March 2026, 13 tokenized products were offered in Hong Kong, with the
assets under management of their tokenised classes amounting to approximately $1.4bn, up seven-fold from the past year.
“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 demand of investors reacting to an increasingly fast-moving and uncertain market
environment,” SFC CEO Julia Leung said.
After first outlining its intention to develop into a leading virtual assets hub in 2022, the Chinese region has progressed regulations on stablecoins and licensed more than 10 crypto exchanges.
It is now shifting from pilot programs to establishing a permanent market
architecture that integrates the token economy into mainstream financial systems.
Speaking at the fourth edition of the event, Financial Secretary Paul Chan doubled down on promoting AI and crypto in the city. Chan said that Hong Kong's new
budget agenda, called 'AI+', represents the convergence of AI and Web3.
The AI+ core theme aims to accelerate the city's digital transformation by integrating AI across all industries, government services and daily life. The
policy aligns with Mainland China’s similar national action plan to move AI from an emerging, novel technology to an industrial backbone.
Chan also commented on Hong Kong’s pace of development in digital assets, which has attracted criticism from some players, particularly regarding the recent
long-awaited approval of stablecoin issuer licenses. The government awarded just two in April, delaying an announcement from March after enacting the ordinance in August 2025.
He said that Hong Kong did not pride itself on being "the fastest or most adventurous region," and instead is "steadfast…not reckless".
The Hong Kong Monetary Authority appeared to veer on the side of caution when handing out the inaugural stablecoin issuer licenses to banking titan HSBC and a Standard Chartered Bank venture Anchorpoint Financial. More than 30 applications were submitted for the licenses, and the HKMA has indicated it will provide limited approvals.
