The Securities and Futures Commission (SFC) has approved the world's first secondary trading of tokenized public funds on an SFC-licensed virtual asset trading platform (VATP).
Secondary trading for two SFC-authorised tokenized money market funds — the ChinaAMC HKD Digital Money Market Fund and ChinaAMC USD Digital Money Market Fund — went live around the clock on Monday, SFC said.
The regulator has introduced a new regulatory framework in April 2026 to pilot such trades, laying down rules and safeguards for these secondary transactions covering trading channel operation, fair pricing, liquidity provision and disclosure.
The interaction between tokenized funds and tokenized money on digital rails can enable faster trade settlement and greater asset mobility. Investors could sell their tokenized assets on VATPs round-the-clock and instantly move sale proceeds elsewhere for other investment opportunities and use cases, which would further boost the utility of Hong Kong's growing tokenized ecosystem, it said.
Elisa Ng Ka-li, executive director of investment products at SFC, said this marks an important milestone in the SFC's push to advance Hong Kong's digital asset development. It puts the regulatory framework through its paces and adds a critical building block – 24/7 trading capability – to the city's evolving tokenization ecosystem.
"We will continue to strengthen Hong Kong's position as a pioneer in tokenization by facilitating responsible innovation while safeguarding investors," she added.
While the first batch of products focuses on tokenized money market funds, the watchdog will closely monitor trading activities and consider broadening the product scope over time, subject to market developments and operational experience, it added.
Frank Feng
