According to a forum address by the Executive Director of the Investment Products Division at the Hong Kong Securities and Futures Commission (SFC), under the Ensemble project, the SFC and the Hong Kong Monetary Authority are jointly leading an exploration into how tokenized deposits or tokenized currencies can be used to invest in tokenized funds.

She noted that the SFC has been formulating policies on tokenized products since 2023, and to date, 17 tokenized retail products have been launched, with total assets under management reaching USD 1.3 billion, representing a growth of 78% over the past 12 months.

She pointed out that tokenized securities are essentially traditional securities wrapped in tokenized form, and the existing legal framework and regulatory requirements governing securities continue to apply. The tokenized structure itself introduces additional risks, which must also be subject to corresponding regulation.

She further noted that tokenization technology can only make transactions faster and cheaper, but liquidity ultimately still depends on market participation, requiring joint efforts from all stakeholders to ensure the market operates effectively.

The representative of the International Monetary Fund (IMF) Hong Kong SAR Sub-Office, speaking at another session of the forum, stated that tokenization technology can strengthen the financial system, expand financial access, and eliminate many barriers, but at the same time, issues in legal, regulatory, system connectivity, and asset settlement still need to be overcome, and that the principle of technological neutrality should be upheld.