Hong Kong launches first-ever 24/7 secondary market for tokenised public funds

The Securities and Futures Commission has given the green light for the world’s first secondary market of tokenised public funds, allowing 24/7 trading of two tokenised money-market funds on its licensed virtual asset trading platform. This approval follows a regulatory framework unveiled in April that sets standards for trading channels, pricing fairness, liquidity provision and disclosure. The initial offering includes two existing SFC-authorised tokenised funds now available for continuous secondary trading.

Officials indicated that future developments may link tokenised funds with tokenised deposit capabilities being built with the Hong Kong Monetary Authority under Project Ensemble, enabling instant transfer of proceeds to other investments. Elisa Ng, the SFC’s executive director of investment products, called the launch a major milestone for Hong Kong’s digital-asset ecosystem. The regulator will closely monitor activity and may broaden the range of products as market experience grows.