Hong Kong SFC Launches Pilot Framework For Secondary Trading Of Tokenised Investment Products On Licensed Platforms
Regulatory physique answerable for overseeing Hong Kong’s securities and futures markets, Securities and Futures Commission (SFC), launched a brand new regulatory framework designed to pilot secondary market buying and selling of tokenised funding merchandise authorised by the SFC, as a part of broader efforts to help the event of Hong Kong’s digital asset ecosystem and enhance buying and selling exercise over time.
According to the regulatory round, the framework is primarily meant to allow secondary buying and selling of tokenised SFC-authorised open-ended funds on SFC-licensed digital asset buying and selling platforms VATPs. The initiative can be geared toward widening entry to regulated buying and selling infrastructure for retail traders, whereas permitting, on a discretionary foundation, the opportunity of over-the-counter secondary buying and selling preparations topic to particular person evaluation.
Since the introduction of the SFC’s preliminary tokenisation regulatory strategy in late 2023, market contributors have more and more explored the issuance and distribution of tokenised monetary merchandise in Hong Kong, creating new market exercise and product constructions. As of March 2026, there have been 13 tokenised merchandise out there to the general public within the jurisdiction, with belongings beneath administration in tokenised share courses rising roughly sevenfold to 10.7 billion US {dollars} over the previous yr.
In response to this development, the regulator has indicated that the timing is acceptable to introduce a pilot framework for steady secondary buying and selling, together with potential 24-hour buying and selling fashions. The framework is meant to additional combine tokenised monetary devices into the broader Web3 ecosystem, with potential use circumstances involving regulated stablecoins and tokenised deposits to help steady settlement and liquidity.
In order to handle structural concerns related to liquidity and investor safety, significantly in relation to buying and selling outdoors typical market hours, the framework incorporates measures knowledgeable by practices in exchange-traded fund markets and licensed digital asset buying and selling infrastructure. These measures are meant to help truthful pricing mechanisms, orderly market situations, liquidity provisioning requirements, and enhanced disclosure necessities.
Advancing Market Integration And Phased Implementation Of Tokenised Products
According to the SFC, the initiative represents a step towards the event of a extra built-in digital asset market construction in Hong Kong, combining conventional monetary merchandise with blockchain-based settlement and buying and selling capabilities. The framework can be positioned as a response to rising demand for steady market entry in a buying and selling atmosphere characterised by quick info circulate and heightened volatility.
The preliminary part of the pilot is anticipated to deal with tokenised cash market funds, with the potential for enlargement to further product classes following an evaluation of operational efficiency and market situations.
Market contributors, together with product issuers and SFC-licensed digital asset buying and selling platforms, are inspired to have interaction with the regulator prematurely of implementing actions beneath the brand new framework or to supply related notifications as required.
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