Hong Kong has approved what regulators describe as the first secondary-market trading of tokenized public funds on licensed virtual-asset exchanges, allowing tokenized money market funds to trade around the clock.
The change applies initially to two tokenized money market funds that had already received regulatory approval. With the new arrangement, investors can buy and sell those products on exchanges without being limited by traditional market hours.
First 24-hour secondary market for tokenized public funds
The Securities and Futures Commission said it has cleared secondary-market trading of tokenized public funds through virtual asset trading platforms, or VATPs, marking what it called a global first. The decision extends tokenized fund activity beyond issuance and into continuous exchange trading on licensed venues.
In practice, the move means the approved tokenized money market funds can now be traded 24 hours a day. That creates an always-open secondary market for products that are structured as tokenized versions of public funds.
Initial rollout covers two approved MMFs
The first phase covers two tokenized money market funds that had already been authorized by regulators. Those products have now entered 24-hour trading under the new framework.
Authorities did not present the launch as a broad opening for all tokenized funds. Instead, the announcement focused on the two already approved money market funds and the start of their secondary-market trading on licensed exchanges.
Regulators want closer links between trading and settlement
Hong Kong’s regulators also outlined plans to connect the trading side of tokenized assets more closely with settlement infrastructure. The SFC and the Hong Kong Monetary Authority said they will use Project Ensemble to link tokenized deposits with asset trading.
According to the announcement, that setup is intended to simplify the path from trade execution to settlement. It is also meant to enable real-time transfers of proceeds after tokenized assets are sold.
Broader aim is to build tokenized market infrastructure
The new framework is part of a wider effort to make tokenized financial products easier to trade in Hong Kong. By permitting exchange-based secondary trading, regulators are trying to expand the market infrastructure available to tokenized funds rather than limiting activity to primary issuance or fixed trading windows.
The next confirmed step is the planned use of Project Ensemble to tie tokenized deposits into the trading and settlement process. If implemented as described, that would support real-time movement of funds tied to tokenized asset transactions while broadening the city’s secondary-market setup for the sector.
Source: en.bloomingbit.io