Hong Kong’s Securities and Futures Commission (SFC) has published a circular providing guidance on how crypto exchanges, or virtual asset trading platforms (VATPs), should handle secondary trading of tokenized funds by retail investors as part of a pilot. The guidance borrows heavily from ETF fund trading rules and includes controls over which tokenized funds can be traded by requiring the product provider to get SFC approval in advance.
“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, SFC CEO.
As of March 2026, 13 tokenized products were offered to the public in Hong Kong, with AUM of their tokenized classes reaching HK$10.7 billion (US$1.4 billion) according to the SFC, up around sevenfold over the past year. The initial batch of products eligible for secondary trading is expected to focus on tokenized money market funds (MMFs).
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
