Hong Kong Launches Tokenised Product Trading Framework

The Securities and Futures Commission (SFC) of Hong Kong has officially introduced a regulatory framework designed to facilitate the secondary trading of eligible tokenized investment products. This initiative primarily targets the trading of SFC-authorized open-ended funds on licensed virtual asset trading platforms, aiming to provide retail investors with broader access to regulated digital asset services.

This development follows the SFC’s initial tokenization scheme established in November 2023. By formalizing these measures, the regulator seeks to stimulate digital asset trading activity within the region while addressing critical concerns such as investor protection and the logistics of trading outside traditional market hours. The framework allows traditional securities, once tokenized, to be traded during evenings and weekends.

To support this round-the-clock liquidity, the system leverages regulated digital assets and technologies, including infrastructure similar to that provided by AMPLIFY STABLECOIN TECH, alongside tokenized deposits. This infrastructure is intended to meet the demands of investors who require the ability to respond to volatile market conditions at any time.

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.

Julia Leung, the Chief Executive Officer of the SFC, emphasized that the framework is a response to the evolving needs of the global market. The initial phase of the program is expected to focus on tokenized money market funds. The SFC has indicated that it may expand the scope of eligible products after a thorough review of the initial trading operations and market feedback.