Hong Kong Securities and Futures Commission: 17 tokenized retail products have been launched, with assets under management reaching US$1.3 billion.

Julia Leung, Executive Director of the Investment Products Division at the Hong Kong Securities and Futures Commission (SFC), said at a forum that under the Ensemble project, the SFC and the Hong Kong Monetary Authority are jointly leading an exploration of how tokenized deposits or tokenized currencies can be used to invest in tokenized funds. She noted that the SFC has been formulating policies on tokenized products since 2023, and that 17 tokenized retail products have been launched so far, with total assets under management reaching US$1.3 billion, representing growth of 78% over the past 12 months. Leung pointed out that tokenized securities are essentially traditional securities wrapped in tokenized form, and that the existing legal framework and regulatory requirements governing securities still apply. The tokenized structure itself introduces additional risks and must be subject to corresponding regulation. She also said that tokenization technology can only make transactions faster and lower in cost, but liquidity ultimately depends on market participation, requiring joint efforts from all stakeholders to ensure the market operates effectively. Chen Fangnan, the International Monetary Fund's (IMF) representative for the Hong Kong Special Administrative Region, said at another session of the forum that tokenization technology can strengthen the financial system, expand financial channels, and remove many barriers, but that issues in areas such as law, regulation, system connectivity, and asset settlement still need to be overcome, and that the principle of technological neutrality should be upheld.