Hong Kong funds could double via tokenisation

Hong Kong could potentially double the size of its asset management industry by adopting token-based finance and digital money infrastructure, according to a new whitepaper from Boston Consulting Group, Aptos Labs and Hang Seng Bank.

The report draws on a technical and commercial pilot conducted under Phase 2 of the Hong Kong Monetary Authority’s Project e-HKD+, which tested tokenised fund infrastructure and settlement.

“We have the technical proof and the commercial validation. Investors are ready to increase allocations as soon as the market removes the friction,”

Said David Chan, managing director and partner at Boston Consulting Group.

The pilot found token-based finance could reduce counterparty risk and operational costs while enabling continuous, 24/7 liquidity and faster settlement for fund products.

BCG said broader adoption will depend on regulatory compliance, business model innovation and scaling the technology to meet institutional standards through coordinated action by banks, regulators and technology providers.

A survey of 500 retail investors showed 61% would be willing to double fund allocations if tokenised products offered instant settlement and round-the-clock access, while 97% expressed interest in enhanced features such as stablecoins and digital money.

The authors said 2026 could mark an inflection point for Hong Kong’s fund industry, urging financial institutions to move beyond pilots and embed tokenisation into core operations.