SFC approves first-ever secondary trading of tokenised public funds

The Securities and Futures Commission (SFC) has approved the world’s first secondary trading of tokenised public funds on an SFC-licensed virtual asset trading platform (VATP). Secondary trading of two existing SFC-authorised tokenised money market funds, available around-the-clock, began today (Note1).

Building upon the SFC’s existing regulatory regime for exchange traded funds and VATPs, the SFC introduced a new regulatory framework in April 2026 to pilot secondary trading of tokenised SFC-authorised funds on SFC-licensed VATPs (Note 2). In a circular, the SFC set out the requirements and safeguards for secondary trading of tokenised funds, covering the operation of the trading channel, fair pricing, liquidity provision and disclosure.

Looking ahead, tokenised public funds could further leverage the tokenised deposit capabilities developed through the SFC’s collaboration with the Hong Kong Monetary Authority (HKMA) under Project Ensemble (Note 3). In particular, the interaction between tokenised funds and tokenised money on digital rails could support more efficient trade settlement and asset mobility. Investors could sell their tokenised assets on VATPs on an around-the-clock basis, and transfer their trading proceeds instantly to elsewhere for other investment opportunities and use cases. This would further enhance the utility of Hong Kong’s growing tokenised ecosystem.

Ms Elisa Ng, the SFC’s Executive Director of Investment Products, said: “Secondary trading of tokenised money market funds marks an important milestone in the SFC’s ongoing effort in advancing Hong Kong’s digital asset development. It puts the SFC’s regulatory framework through its paces and adds an important building block – 24/7 trading capability – to Hong Kong’s evolving tokenisation ecosystem. We will continue to strengthen Hong Kong’s position as a pioneer in tokenisation by facilitating responsible innovation while safeguarding investors.”

While the first batch of products focuses on tokenised money market funds, the SFC will closely monitor the relevant trading activities and consider broadening the product scope over time, after taking into consideration market developments and experience gained.

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Notes:

1. ChinaAMC HKD Digital Money Market Fund and ChinaAMC USD Digital Money Market Fund.
2. The SFC issued the Circular on secondary trading of tokenised SFC-authorised investment products on 20 April 2026.
3. The SFC has been co-leading with the HKMA the tokenisation initiatives for the asset management industry under Project Ensemble.