Hong Kong’s Securities and Futures Commission (SFC) has launched a regulatory framework for piloting the trading of eligible tokenised investment products in the Special Administrative Region, with the aim of expanding the digital asset ecosystem with “robust” safeguards for investors.
The framework will facilitate secondary trading of SFC-authorised open-ended funds on the regulator-licensed virtual asset trading platforms, apart from broadening retail investors’ access to regulated trading services.
The latest move comes three years after the introduction of tokenised assets in Hong Kong. In 2025 alone, tokenised assets grew around sevenfold to around HKUSD 10.7 billion (USD 1.36 billion), according to the SFC figures. As of March 2026, 13 tokenised products were offered to the people residing in the Special Administrative Region.
As per the reports, SFC considers it the right time to pilot 24/7 secondary trading to further integrate tokenised products with the Web3 ecosystem, while integrating lessons learnt from the trading of exchange-traded funds (ETFs). Requirements like fair pricing, orderly trading, liquidity provision and disclosure have also been factored in the new manual.
The new framework measures will tackle issues like investor protection and trading beyond operational hours of the underlying securities.
“The framework will initially focus on tokenised money market funds, with plans to review operations and consider expanding the product scope in due course,” the SFC said on April 20, adding the move will broaden retail access to regulated trading services.
“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,” said Julia Leung, the SFC’s chief executive officer (CEO).
“The SFC may also consider over-the-counter secondary trading arrangements on a case-by-case basis,” the regulator concluded.