The Hong Kong Securities and Futures Commission (SFC) has published a speech by Elisa Ng, its executive director of investment products, introducing an “innovation pathway” for controlled pilots and innovative product launches. Speaking at Hong Kong FinTech Week 2026, Ng outlined a shift from building tokenisation infrastructure to commercialising use cases, particularly secondary trading and treasury management. Using existing powers, the SFC will consider regulatory flexibility and guidance where innovative tokenised products deliver meaningful benefits and give Hong Kong an advantage from entering the market first. The pathway could also extend beyond tokenisation. For secondary trading, the SFC had already approved the first batch of tokenised money market funds for trading on licensed platforms. This provides a test case for a 24/7 secondary market in which digital money could allow sale proceeds to be redeployed immediately. Experience from these funds will inform possible expansion to other assets, with tokenised gold exchange traded funds identified as a potential next pilot. For treasury management, connecting tokenised money market funds with digital money could reduce settlement and reconciliation frictions, allowing liquidity to move more smoothly across borders and between cash and investments. Moving the funds’ underlying money market instruments onto blockchain systems could further automate fund operations. Ng urged asset managers, custodians, fund administrators and banks to modernise workflows and infrastructure so fragmented systems and manual processes do not offset the efficiencies of tokenised transactions.

Original source