Hong Kong SFC: Aims to Combine Tokenized Funds with Digital Currency, Plans Tokenized Gold ETF Pilot

November 3 – Ng Ka-lee, Executive Director of the Investment Products Division at the Securities and Futures Commission (SFC) of Hong Kong, delivered a speech titled "Bridging the Tracks, Channeling Flows: Expanding Hong Kong's Capital Market Tokenization Landscape" at Hong Kong FinTech Week. She noted that an "Innovation Pathway" will be launched, with the aim of combining tokenized funds with digital currency to enhance liquidity and treasury management efficiency.

Ng disclosed that the first batch of tokenized money market funds are conducting secondary market trading on licensed trading platforms, and a tokenized gold ETF may become the next pilot. Hong Kong currently has 17 approved tokenized retail products, covering money market funds, gold products and ETFs, with total assets under management of US$1.3 billion.

In the medium to long term, the SFC will also promote the use of tokenized assets as collateral, expand the tokenization of assets such as equities and bonds on-chain, and explore the application of smart contracts in investment decisions and the automation of trading processes.