Hong Kong SFC Launches Pilot Framework for Secondary Trading of Tokenised Investment Products

Gate News message, April 20 — Hong Kong’s Securities and Futures Commission (SFC) introduced a pilot framework on April 20 to enable secondary market trading of tokenised investment products on SFC-licensed virtual asset trading platforms (VATPs), expanding retail access and supporting blockchain-based settlement in regulated markets.

The framework allows secondary trading of tokenised SFC-authorised open-ended funds on licensed platforms, with potential support for 24-hour trading models and over-the-counter arrangements subject to individual assessment. As of March 2026, Hong Kong had 13 tokenised products available to the public, with assets under management in tokenised share classes reaching approximately $10.7 billion, a sevenfold increase over the preceding year. The SFC introduced its initial tokenisation regulatory approach in late 2023, spurring growing market participation in tokenised financial products.

The framework incorporates liquidity and investor protection measures informed by exchange-traded fund markets and licensed virtual asset trading infrastructure, including fair pricing mechanisms, orderly market conditions standards, and enhanced disclosure requirements. The pilot will initially focus on tokenised money market funds, with potential expansion to additional product categories following operational performance assessment. Market participants are encouraged to engage with the SFC in advance of implementation.