SFC: 17 tokenised retail products launched, AUM reaches US$1.3bn
Hong Kong's securities regulator said it has launched 17 tokenised retail products with US$1.3 billion in assets under management, up 78 per cent in the past year. The SFC and HKMA are jointly exploring tokenised deposits and funds under Project Ensemble.
Hong Kong's Securities and Futures Commission (SFC) has launched 17 tokenised retail products with total assets under management (AUM) of US$1.3 billion, an executive said on Friday.
Wu Ka-li, executive director of the SFC's investment products division, said AUM had grown 78 per cent in the past 12 months. She was speaking at a forum in Hong Kong.
Under Project Ensemble, the SFC and the Hong Kong Monetary Authority (HKMA) are jointly exploring how tokenised deposits or tokenised currencies could be used to invest in tokenised funds, Wu said. The SFC has had a policy on tokenised products since 2023.
Tokenised securities are essentially traditional securities wrapped in tokenisation, and the existing legal framework and regulatory requirements for securities still apply, Wu said. However, the tokenised structure itself brings additional risks that require corresponding regulation, she added.
Tokenisation technology can only make transactions faster and cheaper, but liquidity ultimately depends on market participation, Wu said. All stakeholders need to work together to ensure the market operates effectively, she said.
At another session of the forum, Chan Fong-nam, representative of the International Monetary Fund's Hong Kong SAR office, said tokenisation can strengthen the financial system, expand financial access and remove many obstacles. However, legal, regulatory, system connectivity and asset settlement issues still need to be overcome, and the principle of technology neutrality should be upheld, she said.