Catenaa, Thursday, February 05, 2026- Hong Kong could double the size of its asset management industry by expanding token-based finance and digital money infrastructure, according to a new whitepaper released by Boston Consulting Group, Aptos Labs and Hang Seng Bank.
The report draws on results from a pilot conducted under Phase 2 of the Hong Kong Monetary Authority’s Project e-HKD+ and outlines how tokenization could reshape fund issuance, settlement and distribution.
The authors said the pilot showed token-based financial infrastructure is technically viable and commercially attractive for large-scale use.
According to the findings, tokenization can reduce counterparty risk and operational costs while enabling continuous liquidity through round-the-clock trading and instant settlement.
The shift would replace traditional message-based settlement systems that rely on delayed reconciliation with models where ownership and compliance rules are embedded directly into digital tokens.
The pilot identified three areas needed for broader adoption: meeting regulatory requirements, developing sustainable business models and scaling systems to institutional standards.
The report said coordination among regulators, banks and technology providers will be required to move from testing to market-wide deployment.
Investor demand emerged as a central driver. A survey of 500 retail investors conducted in May and June 2025 found that 61% said they would double fund allocations if tokenized products offered instant settlement and 24-hour access.
Nearly all respondents expressed interest in features tied to tokenized funds and digital money, including stablecoins and central bank digital currencies.
The whitepaper said momentum in 2026 could mark a turning point for Hong Kong’s fund sector if institutions integrate tokenization into core operations rather than limiting its use to pilots.
It added that early adopters could attract new capital flows as market frictions decline.
