Tokenized funds open secondary market circulation! How is the Hong Kong SFC's new policy driving the development of global on-chain finance?
- Core Viewpoint: Through the "Stablecoin Ordinance" and the SFC's new framework, Hong Kong has pioneered a compliant secondary circulation channel for RWA (Real World Asset Tokenization) products, driving the implementation of the on-chain financial market. Its progress leads major economies such as the US and Europe in terms of speed and execution.
- Key Elements:
- On April 20, 2026, Hong Kong issued new regulations, allowing, for the first time, secondary market trading of SFC-recognized tokenized investment products on licensed platforms, granting them financial product attributes.
- As of the end of March 2026, Hong Kong had 13 tokenized products offered to the public, with total assets under management reaching HKD 10.7 billion, a year-on-year increase of approximately seven times.
- The Hong Kong Monetary Authority (HKMA) has issued stablecoin issuer licenses to Dingdian Fintech and HSBC, providing a compliant foundation for RWA settlement.
- The Digital Currency Institute of the People's Bank of China and the HKMA jointly tested real-time exchange between digital yuan and stablecoins, reducing cross-border transaction time from 2 hours to 3 minutes and lowering costs by over 20%.
- A joint statement by the U.S. SEC and CFTC clarified that tokenized assets fall under the securities category and divided assets into five classes; the EU's MiCA regulation came into effect in December 2024, providing unified licensing and market access rules.
- Regulatory practices in the US and EU (such as the OCC's licensing causing bank dissatisfaction, and regulatory arbitrage risks from MiCA's cross-border operations) provide cautionary lessons for Hong Kong, which needs to balance institutional compliance costs with risk monitoring.
Original Author: ShirleyLi, Researcher at Web3Caff Research
Compliance Notice: The content below is solely an objective analysis of the latest regulatory strategies in Hong Kong and globally regarding RWA, stablecoins, and related fields. It does not constitute any proposal or offer. Please be aware that issuing or participating in the investment of Tokens is subject to varying degrees of stringent regulatory requirements and restrictions in different countries and regions. In particular, issuing Tokens in Mainland China may involve "illegal issuance of securities," and providing cryptocurrency transaction matching services and other related activities are also considered "illegal financial activities" (Readers in Mainland China are strongly advised to consult A Compilation and Key Points of Laws and Regulations Related to Blockchain and Virtual Currencies in Mainland China). Therefore, please do not use this information for any related decisions, and strictly adhere to the laws and regulations of your country or region, refraining from participating in any illegal financial activities.
RWA (Real World Assets Tokenization) refers to the process of converting traditional financial assets such as bonds, funds, and real estate into digital certificates that can be circulated and settled on-chain using blockchain technology. This mechanism can not only provide more efficient issuance and circulation pathways for traditional financial assets but also introduce these assets into the Web3 financial system, forming new product combinations with stablecoins and on-chain finance. Consequently, the market potential inherent in the RWA track is drawing significant attention from industry participants.
However, significant differences exist between traditional financial systems and Web3 financial systems in terms of trading mechanisms, clearing models, and regulatory structures. This means that the large-scale implementation of RWA requires not only solving general infrastructure-level issues but also heavily depends on the refinement of regulatory frameworks and the improvement of institutional norms.
Against this backdrop, Hong Kong has been noticeably accelerating the pace of its overall regulatory advancement since submitting the Stablecoin Ordinance Bill at the end of 2024.
On May 30, 2025, Hong Kong formally passed the Stablecoin Ordinance, establishing a clear regulatory framework for the issuance and operation of stablecoins. On one hand, this framework establishes a licensing system for stablecoin issuers. On the other hand, it imposes systematic requirements on licensed institutions regarding capital adequacy, reserve asset management, risk control, and operational compliance, laying a regulatory foundation for stablecoins to become trusted settlement tools for on-chain transactions (Further reading: Hong Kong Passes Stablecoin Ordinance Bill: What Impetus Will It Provide for Global Stablecoin Compliance and the Internationalization Strategy of the RMB?).
On April 10, 2026, the Hong Kong Monetary Authority (HKMA) issued stablecoin issuer licenses to Anchor Point Financial Technology Limited and The Hongkong and Shanghai Banking Corporation Limited under the Stablecoin Ordinance. [1]
On April 20, 2026, the Securities and Futures Commission of Hong Kong (SFC) further released a new regulatory framework, explicitly allowing the secondary market circulation of tokenized investment products for the first time. The core direction of this framework includes: permitting the circulation of SFC-authorized open-ended tokenized funds; allowing related products to be traded on platforms licensed by the SFC (with potential allowance for over-the-counter forms in specific cases). This means that tokenized products authorized by the SFC have, for the first time, obtained a compliant secondary circulation channel, also signifying that they possess the attributes of financial products.
On the product level, Hong Kong SAR Legislative Council member Duncan Chiu mentioned in a speech at the 2026 Hong Kong Web3 Carnival that HashKey has already trialed the on-chain RWA Token for silver, HSBC has released a tokenized business roadmap, and institutions like Franklin Templeton have also issued tokenized funds in Hong Kong. [2] Furthermore, according to SFC disclosures, as of the end of March 2026, 13 tokenized products had been offered to the Hong Kong public. The total value of assets managed by these tokenized products grew approximately sevenfold over the past year, reaching a total value of HKD 10.7 billion, indicating rapidly increasing market acceptance for such products. [3] Judging from these data trends, the opening of circulation for tokenized assets can also be seen as a significant practical step towards the realization of a 24/7 on-chain financial market.
Looking globally, the relevant regulatory systems in the United States and the European Union are also gradually becoming clearer.
In the United States, the Guiding and Establishing National Innovation for US Stablecoins Act of 2025 (GENIUS Act) was officially signed in July 2025. This act aims to establish a comprehensive framework for stablecoin issuance and regulation, stipulating clear requirements for issuer qualifications, asset reserve conditions, and compliance standards. Meanwhile, the Digital Asset Market Clarity Act (Clarity Act) is currently under review in the Senate, aiming to provide standardized guidance for the market through unified on-chain asset classification and regulatory rules. (Further reading: US Senate Passes GENIUS Stablecoin Act: What Major Changes Await Web3 and RWA?, US CLARITY Act Under Review: Are DeFi-Friendly Measures, Asset Classification, and SEC-CFTC Power Division a Turning Point for Crypto Regulatory Clarity?)
In March 2026, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement classifying on-chain assets into five types: Digital Commodities (cryptocommodities), Digital Collectibles (NFTs), Digital Instruments (Utility Tokens), Payment Tokens (Stablecoins), and Digital Securities. It explicitly stated that tokenized assets fall under the securities category. This also provides a reference for further establishing regulatory boundaries for various types of assets.
In the European Union, the Markets in Crypto-Assets Regulation (MiCA) came into effect in December 2024. By establishing a unified regulatory framework, MiCA provides clear licensing systems and market access rules for businesses such as trading platforms, custody services, and stablecoin issuance. The latest Digital Asset Tax Transparency Act (DAC8 Directive) also came into effect on January 1, 2026, requiring on-chain asset service providers to disclose detailed information about users' assets and transactions to tax authorities of respective member states and share this information. This means tax authorities can oversee the holding, trading, and transfer of Web3 assets with the same transparency as Web2 bank accounts.
Thus, the on-chain asset regulatory frameworks of major global economies are taking initial shape, showing a trend towards greater clarity and more defined classification.
Comparison of On-Chain Financial Regulatory Frameworks in Hong Kong, the US, and the EU, created by ShirleyLi, Researcher at Web3Caff Research
However, overall, the regulatory frameworks in the US and EU primarily focus on standardizing the operation of on-chain financial markets and clarifying asset nature and classification, whereas Hong Kong places greater emphasis on promoting the practical implementation of on-chain financial markets. This direction aligns closely with the previously published Roadmap for Fixed Income and Currency Markets by the SFC and the HKMA. This roadmap emphasizes Hong Kong's strategic positioning as a "global fixed income and currency center." Naturally, the regulatory strategies related to stablecoin licenses, RWA asset issuance, and circulation are integral parts of Hong Kong's asset regulatory framework.
Notably, at the end of February this year, the Digital Currency Institute of the People's Bank of China and the Hong Kong Monetary Authority jointly launched a special test for cross-border RWA settlement using the digital yuan (e-CNY). Using agricultural product trade and cross-border infrastructure as test scenarios, this round of trials validated the real-time exchange and settlement capabilities between the digital yuan and Hong Kong's pending-license stablecoins (two companies have now received official licenses). It successfully reduced the time for traditional cross-border transactions from 2 hours to 3 minutes, with costs decreasing by over 20%. [4] This breakthrough further reveals the feasibility of synergistic operation between the digital yuan and compliant stablecoins. (Further reading: Market Pulse Analysis: Viewing the 'Digital Yuan International Operations Center' Signal for Cross-Strait Integration - Mainland China Provides the Foundation, Hong Kong Provides the Market)
However, the regulatory experiences of the US and EU also offer valuable lessons for Hong Kong. For instance, the U.S. Office of the Comptroller of the Currency (OCC) granted trust bank charters to five Web3 companies, including Circle, Ripple, and BitGo, at the end of last year, allowing them to legally participate in on-chain financial activities. This move, however, sparked dissatisfaction from the traditional banking sector. [5] Traditional banks argue that their compliance responsibilities and costs are not equivalent to those of licensed Web3 institutions, and they also perceive a competitive threat in business operations. Meanwhile, the EU's MiCA regulation allows on-chain asset service providers licensed in one member state to operate throughout the entire EU. This cross-border pass may lead to risks of license abuse or regulatory arbitrage.
For Hong Kong, these cases provide important references and cautionary tales. On one hand, while vigorously promoting the implementation of the on-chain financial system, Hong Kong needs to clearly define the responsibility boundaries between traditional financial institutions and Web3 entities to avoid issues of imbalanced compliance obligations and costs. On the other hand, it is necessary to strengthen oversight of the actual operations of licensed institutions and establish effective risk monitoring mechanisms to ensure user asset security and achieve sustainable market development. Nevertheless, overall, the global regulatory system for on-chain finance is still in an exploratory phase, and its integration process with traditional finance requires long-term observation.
Key Points Structure Diagram:
References
[1] Hong Kong Monetary Authority Issues Two Stablecoin Issuer Licenses
[4] Are Hong Kong Stablecoins + Digital Yuan a 'Fast Lane' for Mainland Assets Going Global?
[5] Banks' Turf Under Attack? US Banking Industry Plans to Sue OCC Over Crypto Licenses
[7] Circular on Secondary Market Trading of Tokenized SFC-Authorized Investment Products
Disclaimer
This report is prepared by Web3Caff Research. The information contained herein is for reference only and does not constitute any prediction, investment advice, proposal, or offer. Investors should not rely on such information to purchase or sell any securities, cryptocurrencies, or adopt any investment strategy. The terminology used and opinions expressed in this report are intended to help understand industry trends and promote the responsible development of the Web3 and blockchain sectors. They should not be construed as definitive legal viewpoints or the views of Web3Caff Research. The views in this report reflect only the author's personal opinions as of the stated date and may change with subsequent circumstances, unrelated to the position of Web3Caff Research. The information and opinions contained in this report come from proprietary and non-proprietary sources deemed reliable by Web3Caff Research, but are not necessarily comprehensive, and their accuracy is not guaranteed. Therefore, Web3Caff Research makes no guarantee of any kind regarding their accuracy or reliability and assumes no responsibility for errors or omissions arising in any other manner (including liability to any person due to negligence). This report may contain "forward-looking" information, which may include predictions and forecasts, and nothing herein constitutes a guarantee of any forecast. Whether to rely on the information contained in this report is entirely at the reader's own discretion. This report is for reference only and does not constitute investment advice, a proposal, or an offer to buy or sell any securities, cryptocurrencies, or adopt any investment strategy. Please strictly adhere to the relevant laws and regulations of your country or region.
