On April 20, 2026, the Hong Kong Securities and Futures Commission announced a new regulatory framework, allowing tokenized Securities and Futures Commission–approved investment products to be traded in the secondary market on licensed virtual asset trading platforms. This is a key step for Hong Kong as it moves from “tokenized issuance” to “tokenized trading,” marking a new phase in the development of Hong Kong’s digital asset ecosystem.

Key takeaways: The new rules mainly target tokenized open-ended funds. After tokenization, they can be traded on licensed platforms in the secondary market, and retail investors can also participate in regulated trading services. The initiative allows traditional securities products to be tokenized and traded at night and on weekends, and promotes around-the-clock liquidity by using regulated stablecoins and tokenized deposits. The SFC’s Chief Executive Officer, Julia Leung, said the new framework is designed to meet investors’ needs amid an increasingly fast-changing and uncertain market environment. The first batch of products will primarily be tokenized money market funds, and the SFC will expand the scope in due course based on operational conditions.

Background and significance: This framework upgrade is not without precedent. As of March 2026, Hong Kong has 13 tokenized products offered to the public, with total assets under management of HK$10.7 billion, up by about 7 times year over year. As for stablecoin licensing, institutions including HSBC and Standard Chartered have planned to launch Hong Kong dollar stablecoins. The HKMA’s “Ensemble” project has also made significant progress in tokenized deposits and digital asset transaction settlement. This framework connects the issuance, trading, and settlement of tokenized products across all stages, forming a complete closed loop.

Market impact and outlook: After the new rules were released, the industry response was positive. OSL Group said the new rules will enrich stablecoin market application scenarios and the application ecosystem in payments and trading. Weng Xiaoqi, CEO of New Fire Group, believes that Hong Kong’s pragmatic push starting with tokenized money market funds will help further consolidate its position as a hub for traditional finance and digital assets. For investors, the liquidity of tokenized products will improve significantly, and trading efficiency will be noticeably optimized. At the same time, investors also need to pay attention to volatility risks brought by 24-hour trading, as well as differences in the specific terms of each product.
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