Hong Kong SFC approves first retail tokenized MMF trading

The Securities and Futures Commission of Hong Kong has approved the first 24/7 trading of a retail tokenized money market fund, with the ChinaAMC Digital Money Market Fund now trading in USD and HKD on PantherTrade, a crypto exchange owned by Nasdaq-listed digital broker Futu Holdings. The tokenized fund currently holds roughly $660 million in assets under management, with around 16% allocated to retail share classes, though only the Class F shares are tradable on the platform.

Investors can now exit positions at any time without waiting for subscription or redemption windows, though there is always a cost involved. However, tokens cannot be withdrawn from PantherTrade, and official ownership remains on the fund’s off-chain register, making this a closed-loop order book system rather than free movement of on-chain tokens.

When the SFC announced its plans in April, it discussed settlement using tokenized deposits and stablecoins. Subsequently, ChinaAMC (Hong Kong) began incorporating tokenized deposits into the fund itself using HSBC‘s tokenized deposit capabilities.

In September, the firm completed a subscription and redemption use case using the Standard Chartered Anchorpoint regulated HKD stablecoin. Hong Kong benefits from its licensing regime, where crypto exchanges or virtual asset trading platforms are allowed to trade both cryptocurrencies and tokenized securities, unlike many other jurisdictions that require a separate license for securities trading.

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