Hong Kong allows 24/7 trading of tokenized funds

The Securities and Futures Commission in Hong Kong has approved a framework allowing SFC-authorized tokenized funds to be bought and sold 24 hours a day, seven days a week on SFC-licensed virtual asset trading platforms. The rules apply to secondary-market trades of authorized tokenized products and initially target low-risk funds.

As of March 2026, 13 tokenized products had been sold to the public in Hong Kong. Assets under management for tokenized shares rose roughly sevenfold over the prior year to about HK$10.7 billion (approximately $1.37 billion).

The framework explicitly permits secondary-market trading on licensed virtual-asset trading platforms. Off-exchange secondary trading may be allowed on a case-by-case basis. The SFC said it will monitor early products and review performance before deciding whether to expand the range of eligible assets. The commission is also developing rules for perpetual contracts and margin financing linked to virtual assets.

Regulated stablecoins and tokenized deposits are central to settlement for continuous trading. Liang Fengyi, the SFC’s chief executive officer, said: “This initiative allows traditional securities products to be traded at night and on weekends after tokenization, and promotes all-weather liquidity through the use of regulated Stablecoins and tokenized deposits.”

To support round-the-clock trading and settlement, the Hong Kong Monetary Authority and the SFC are building a three-layer digital money infrastructure. Hong Kong introduced a mandatory licensing regime for fiat-referenced stablecoins in March 2026. Under the rules, such stablecoins must be fully backed by reserves and issuers must meet a minimum capital requirement of HK$25 million; the regime is designed for stablecoins used in retail payments and transfers. As of April 2026, the HKMA had not issued any stablecoin licenses and did not meet its self-set target for first approvals in March.

Pilot projects and bank initiatives are already running. EnsembleX, launched in November 2025, operates with real money and includes participants such as HSBC, Standard Chartered and Bank of China. HSBC completed the first cross-bank transaction on the platform, moving HK$3.8 million for Ant International in real time. EnsembleTX is being developed to settle tokenized deposits between banks and aims to evolve toward 24/7 tokenized central bank money.

Yip Chi-hang, the SFC’s executive director, told attendees at the Hong Kong Web3 Carnival that the framework is the first globally to offer predictable rules for trading tokenized authorized funds. Regulators will monitor the initial cohort of products and may widen the scope of assets that can trade under the round-the-clock regime.