-- Hong Kong's Securities and Futures Commission rolled out a new regulatory framework to enable secondary trading of tokenized investment products, according to a press release on Monday.
The initiative will initially allow trading of tokenized SFC-authorized open-ended funds on licensed virtual asset trading platforms, with the regulator also open to considering over-the-counter arrangements on a case-by-case basis.
The framework introduces safeguards covering pricing, liquidity, disclosure, and orderly trading, drawing on exchange-traded fund mechanisms and existing virtual asset platform infrastructure, the regulator said.
It also paves the way for potential 24/7 trading supported by regulated stablecoins and tokenised deposits.
The initial rollout will focus on tokenised money market funds, with the regulator set to review operations before expanding the scope.