Hong Kong Issues First Comprehensive Tokenization Framework
The SFC's new circular consolidates licensing, custody and disclosure requirements for tokenized real-world assets, putting the city at the forefront of Asian regulation.
The Hong Kong Securities and Futures Commission published a 67-page circular this week consolidating its regulatory expectations for tokenized real-world assets, including detailed guidance on licensing, custody, disclosure and secondary-market operations.
The framework is widely seen as the most comprehensive issued by any major Asian jurisdiction to date, and positions Hong Kong as a credible competitor to Singapore, Dubai and Abu Dhabi for institutional tokenization mandates.
Several international banks — including HSBC, Standard Chartered and UBS — have already signalled their intention to expand tokenization activity in the city. The Monetary Authority is reviewing applications from at least five additional licensed custodians.
The political backdrop is deliberate. Hong Kong's positioning as a regulated digital asset hub is part of a broader Beijing-endorsed strategy to retain financial relevance in an increasingly fragmented global landscape.
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