Hong Kong's Financial Industry Moves Towards On-Chain: First Tokenized Securities Issuance Available for Subscription and Redemption

Recently, a Hong Kong brokerage has become the first institution to issue tokenized securities in Hong Kong and has fully integrated into a certain blockchain platform as the core on-chain issuance network. The brokerage launched the first daily redeemable tokenized securities product, achieving a "multi-point sales, multi-custody" layout for securities on-chain, aiming to become a standardized product for on-chain tokenized assets, facilitating real-time seamless switching for investors between different tokenized securities.

This tokenized security is issued by the broker based on its credit support, and simultaneously launched in three currency versions: US Dollar, Hong Kong Dollar, and offshore Renminbi. Among them, the US Dollar version's yield is anchored to the US Secured Overnight Financing Rate (SOFR), providing users with a fair, transparent, and low-volatility cash management tool priced in US Dollars. This product features high liquidity, supports daily interest calculation, and records the entire process through blockchain technology, achieving public transparency and traceability of asset circulation.

Compared to the tokenized securities previously issued by the brokerage, the products launched this time feature multi-point distribution and token custody. Investors can subscribe through the brokerage or a trading platform and can choose to hold the tokenized securities using traditional securities custody models. This arrangement facilitates more extensive, continuous, and in-depth participation of traditional investors in various aspects of tokenized securities investment. It is worth noting that, in addition to institutional professional investors, high-net-worth individual professional investors can also participate in subscriptions and trading.

This product adopts a daily interest calculation mechanism, which is not only suitable for institutions managing short-term idle funds but also aligns with the usage habits of Web3 users regarding on-chain native assets. As a forward-looking compliant financial product, it fully demonstrates the potential for the combination of real-world assets and on-chain infrastructure, providing a replicable and scalable reference path for on-chain RWA (Real World Assets) scenarios.

This issuance has received deep participation from multiple blockchain business organizations, innovatively exploring a "one-stop path of asset issuance - token custody - distribution and circulation," laying the foundation for more financial institutions to issue or arrange on-chain issuance of tokenized assets in the future.

The CEO of the brokerage stated that the launch of the tokenized securities is an important milestone in the company's ongoing efforts to build a digital product system and is also a continuation of exploring and improving the on-chain financial product series. The company values cooperation with blockchain technology providers, as its complete infrastructure and exchange functions allow the company's assets to enter the public blockchain world in a more diverse and convenient manner.

It is worth mentioning that this brokerage successfully issued the first tokenized securities applicable under Hong Kong law in January 2024, becoming the first Chinese-funded brokerage to complete the minting, issuance, and distribution of self-created financial assets on the public chain. This is also the first issuance of tokenized securities following the relevant regulatory guidelines released by the Hong Kong Securities and Futures Commission in November 2023. Subsequently, the company launched tokenized securities linked to financial assets such as stocks. In January 2025, the company collaborated with an asset management company to implement the first fund-level tokenized securities distribution and trading, continuously enriching the underlying ecology of the tokenized securities field.

Blockchain technology providers have stated that they will continue to provide reliable underlying support and infrastructure for compliant assets, promoting Hong Kong to become the world's most vibrant on-chain financial hub. In the future, they will continue to expand cooperation with traditional financial institutions, including brokerages and banks, further developing the on-chain issuance and circulation mechanisms for compliant assets, and assisting Hong Kong in creating a real and usable on-chain financial core model.

The issuance of this tokenized security marks a key step forward for Hong Kong's fintech ecosystem on the RWA path, laying a solid foundation for the next stage of financial institutions to issue or arrange tokenized assets on-chain and collaborate. With the addition of more leading financial institutions, on-chain finance is expected to gradually form a complete ecological closed loop, reconstructing the methods of asset issuance, circulation, and governance.