TITLE: Hong Kong's Securities and Futures Commission Launches Secondary Trading Framework for Tokenised Investment Products
BODY:
On April 20, 2026, the Securities and Futures Commission (SFC) launched a new regulatory framework to pilot secondary trading of tokenised SFC-authorised investment products in Hong Kong. Set out in a circular, the framework aims to facilitate 24/7 secondary trading of tokenised SFC-authorised open-ended funds on SFC-licensed virtual asset trading platforms (VATPs), broadening access to regulated trading services for retail investors. The SFC may also consider over-the-counter secondary trading arrangements on a case-by-case basis.
As of March 2026, 13 tokenised products were offered to the public in Hong Kong, with assets under management of their tokenised classes reaching $10.7 billion, representing a seven-fold increase over the past year. The framework addresses liquidity and investor protection issues by incorporating measures drawn from exchange-traded fund trading and VATP infrastructure, covering fair pricing, orderly trading, liquidity provision, and disclosure requirements. The framework facilitates trading beyond regular trading hours through the potential use of regulated stablecoins and tokenised deposits, enabling round-the-clock liquidity.
Julia Leung, SFC Chief Executive Officer, stated the framework represents a major milestone in building Hong Kong's integrated digital asset ecosystem with robust investor safeguards. The initial batch of products is expected to focus on tokenised money market funds, with the SFC reviewing their operation and considering expanding the product scope in due course. Product issuers and intermediaries, including SFC-licensed VATPs, are encouraged to consult or notify the SFC beforehand on endeavours related to this framework.