Hong Kong Starts World’s First 24-Hour Trading in Tokenized Money Market Funds
RWA Signal Insight
InfrastructureThe Hong Kong Securities and Futures Commission (SFC) has officially authorized the 24/7 secondary-market trading of tokenized money market funds (MMFs) on licensed virtual-asset trading platforms (VATPs). This landmark decision marks the first time globally that tokenized public funds have been permitted to trade around the clock on such exchanges. Two previously approved tokenized MMFs have already commenced continuous trading, removing traditional time-based market restrictions for investors. To support this ecosystem, the SFC and the Hong Kong Monetary Authority are leveraging Project Ensemble to integrate tokenized deposits with asset trading infrastructure. This initiative aims to streamline the entire lifecycle of tokenized assets by enabling real-time settlement and immediate transfer of proceeds from sales. By enhancing the connectivity between trading and settlement systems, Hong Kong is positioning itself as a leader in institutional-grade digital asset infrastructure. This development is significant for the RWA market as it provides a scalable framework for liquidity and operational efficiency in tokenized financial products.
Key points
- Hong Kong SFC authorized 24/7 secondary-market trading for tokenized MMFs on licensed VATPs.
- Two tokenized MMFs have already launched continuous trading operations under the new framework.
- Project Ensemble will integrate tokenized deposits to facilitate real-time settlement for asset trades.
- The initiative aims to broaden secondary-market infrastructure for global tokenized financial products.
Background
The Securities and Futures Commission (SFC) is the primary financial regulator in Hong Kong responsible for overseeing securities and futures markets. Project Ensemble is a collaborative initiative led by the Hong Kong Monetary Authority to develop a wholesale central bank digital currency (wCBDC) ecosystem and improve interbank settlement infrastructure for tokenized assets.