Hong Kong approves first secondary trading of tokenised public funds, with two money market funds trading 24/7

Hong Kong's Securities and Futures Commission has approved the world's first secondary trading of tokenised public funds on licensed virtual asset trading platforms. Two SFC-authorised tokenised money market funds began trading around the clock on Monday 26 October.

The approval builds on a framework the SFC introduced in April covering trading channel operations, fair pricing, liquidity provision and disclosure. The SFC says tokenised funds could later draw on the tokenised deposit capabilities being developed with the HKMA under Project Ensemble, letting investors sell at any time and move the proceeds on instantly. It will monitor trading and may broaden the product scope.

Elisa Ng, the SFC's executive director of investment products, called the start of trading an important milestone for Hong Kong's digital asset development.