Chan Ho-lim: The Securities and Futures Commission of Hong Kong is researching rules for tokenized secondary markets, with the aim to announce details in the first half of 2026

Deputy Secretary for Financial Services and the Treasury of Hong Kong, Chen Haolian, stated at the opening ceremony of the 2026 Hong Kong Web3 Carnival on April 20, 2026 that the Securities and Futures Commission (SFC) is studying secondary-market trading rule(s) for tokenized products with the industry, with the goal of announcing policy details in the first half of 2026. Chen Haolian also announced that the Hong Kong Monetary Authority (HKMA) has issued its first batch of two stablecoin issuer licenses this month.

LEAP Framework: Progress on the Regulatory System and Licensing

According to Chen Haolian’s speech at the 2026 Hong Kong Web3 Carnival, Hong Kong’s “Digital Asset Development Policy Statement 2.0” released in 2025 will promote Web3 development with “LEAP”’s four major pillars. Regarding the regulatory system, Chen Haolian disclosed:

Stablecoin licensing: HKMA has issued the first batch of two stablecoin issuer licenses as of April 2026

Licensed trading platforms: More than 10 licensed digital-asset trading platforms are currently operating

New regulatory regime: The Hong Kong government is drafting a regulatory framework for digital-asset trading and custody service providers, with the goal of submitting a bill to the Legislative Council in 2026

In his speech, Chen Haolian said that Hong Kong will adhere to the principle of “the same business, the same risks, the same rules” to build a regulatory system that suits local conditions and meets international standards.

Expansion of Tokenized Products: Money Market Funds and Green Bonds

According to Chen Haolian’s speech, Hong Kong currently has more than 10 tokenized money market funds recognized by the SFC, and the SFC is studying secondary-market trading rule(s) for tokenized products with the industry, with the goal of announcing policy details in the first half of 2026.

Regarding tokenized bonds, in November 2025, Hong Kong issued its third batch of tokenized green bonds with a total value of HK$10 billion, making it the largest issuance globally. In August 2024, HKMA launched the Ensemble project sandbox, and in November 2025 it entered a pilot phase under the name EnsembleTX, focusing on real-time liquidity management for trading tokenized money market funds.

Two-Way Capital Flows Between Hong Kong and the Middle East

According to a report in the Hong Kong Commercial Daily on April 19, 2026, regarding capital flows between Hong Kong and the Middle East, Chen Haolian said that indeed more clients are asking how to route funds to Hong Kong or open accounts in Hong Kong. Chen Haolian revealed that a licensed virtual insurance company in Hong Kong has expanded its business to Saudi Arabia and the United Arab Emirates, tokenized funds from Hong Kong have entered Middle East wealth-management platforms, and Asian capital can buy Islamic bond ETFs in Hong Kong, providing Middle East investors with a reliable market channel.

Frequently Asked Questions

What is the target timeline for the SFC’s study of secondary-market trading rule(s) for tokenized products?

According to Chen Haolian’s speech on April 20, 2026 at the 2026 Hong Kong Web3 Carnival, the SFC is studying secondary-market trading rule(s) for tokenized products with the industry, with the goal of announcing policy details in the first half of 2026.

What are the details of the first batch of stablecoin licenses issued by the HKMA this month?

According to Chen Haolian’s speech, HKMA issued the first batch of two stablecoin issuer licenses as of April 2026, which is the first round of license issuance to formally take effect Hong Kong’s stablecoin regulatory regime.

What is the issuance size of the tokenized green bonds issued by Hong Kong in 2025?

According to Chen Haolian’s speech, in November 2025 Hong Kong issued its third batch of tokenized green bonds with a total value of HK$10 billion, representing the largest scale of tokenized green bond issuance in the world.