BCG: "Hong Kong’s fund industry could more than double in size if it adopts tokenization"

Hong Kong’s fund industry could more than double its market size if it adopts tokenization-based financial infrastructure, according to a new analysis.

According to The Block on the 4th (local time), Boston Consulting Group (BCG), in a white paper jointly published with Aptos Labs and Hang Seng Bank, said Hong Kong’s asset management industry can achieve structural growth through tokenization and digital currency infrastructure. The analysis was based on the Phase 2 pilot results of the Hong Kong Monetary Authority (HKMA)’s central bank digital currency (CBDC) proof-of-concept project, “Project e-HKD+.”

The report said token-based financial infrastructure is not only technically feasible, but that sufficient commercial demand has also been validated. It noted that tokenization can reduce settlement delays, counterparty risk and operating costs inherent in traditional fund management, while enabling 24-hour trading and real-time settlement.

BCG identified key tasks for scaling tokenization as ensuring regulatory alignment, building new business models, and achieving institution-grade technological scalability. It emphasized that cooperation among financial institutions, regulators and blockchain technology companies is a prerequisite.

David Chan, a managing director at BCG, said, “Technical validation and commercial viability have already been secured,” adding, “Once inefficiencies in the market are removed, investors are ready to rapidly increase allocations to tokenized funds.”

Investor demand has also been confirmed. According to the report, in a 2025 survey of 500 retail investors in Hong Kong, 61% of respondents said they would be willing to double their fund investment allocation if instant settlement and 24-hour trading were available. As for advanced features of tokenized financial products—including CBDCs and stablecoins—97% expressed interest.

BCG said the shift from message-based payment systems to token-based finance represents a structural change that integrates asset ownership, value transfer and regulatory requirements into a single digital asset.

BCG said “2026 is highly likely to be a turning point for tokenized finance,” adding that “financial institutions that fail to scale beyond the pilot stage to commercial size may miss opportunities to attract new capital inflows.”