Hong Kong Starts World’s First 24-Hour Trading in Tokenized Money Market Funds
Summary
- Hong Kong said it will allow tokenized money market funds (MMFs) to be bought and sold 24 hours a day on licensed virtual-asset exchanges.
- The Securities and Futures Commission said it had approved, for the first time globally, secondary-market trading of tokenized public funds through virtual asset trading platforms (VATPs).
- The SFC and the Hong Kong Monetary Authority said they plan to use Project Ensemble to streamline the process from trading to settlement for tokenized assets and expand secondary-market infrastructure for the sector.
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Hong Kong has allowed tokenized money market funds, or MMFs, to trade around the clock on licensed virtual-asset exchanges.
The Securities and Futures Commission said it had approved secondary-market trading of tokenized public funds through virtual asset trading platforms, or VATPs, for the first time globally.
Under the move, two tokenized MMFs that had already received regulatory approval have started 24-hour trading. Investors can now buy and sell the products on exchanges without time restrictions.
Hong Kong authorities also plan to strengthen links between trading infrastructure and settlement systems. The SFC and the Hong Kong Monetary Authority will use Project Ensemble to connect tokenized deposits with asset trading.
The initiative is designed to streamline the process from trading to settlement for tokenized assets and enable real-time transfers of proceeds from asset sales.
The new framework is intended to make tokenized financial products easier to trade and broaden secondary-market infrastructure for the sector.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.