Hong Kong's push to establish a tokenised financial system is poised to attract more companies to set up treasury centres in the city, which would give investors broader options while reducing transaction costs, according to market players.
Both corporations and individuals stood to benefit from increased tokenisation of money and assets, which could make financial services faster and more efficient and accessible, said representatives from Standard Chartered, China Asset Management (Hong Kong) and government agency InvestHK during a briefing on Friday.
As government-led tokenisation and digital asset initiatives, such as Project Ensemble, gained traction, more commercial applications were expected to emerge, according to King Leung, global head of financial services, fintech and sustainability at InvestHK.
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Leung pointed out that tokenised financial products could improve corporate cash and treasury management by reducing the time and cost of cross-border transactions. That could attract more mainland Chinese firms to establish treasury centres in Hong Kong, following the path of several large state-owned enterprises.
In April, the Hong Kong Chinese Enterprises Association formed a Corporate Treasury Centre Committee, comprising 43 member companies across sectors such as energy, telecommunications and manufacturing.
Collectively, these companies managed assets exceeding US$240 billion, with financing of about US$100 billion and annual settlements close to US$3 trillion, according to a statement.
From left: Katie He, head of product and strategy at ChinaAMC (HK), King Leung, global head of financial services, fintech and sustainability at InvestHK, and Anthony Lin, head of Hong Kong, Greater China and North Asia at Standard Chartered. Photo: Aileen Chuang alt=From left: Katie He, head of product and strategy at ChinaAMC (HK), King Leung, global head of financial services, fintech and sustainability at InvestHK, and Anthony Lin, head of Hong Kong, Greater China and North Asia at Standard Chartered. Photo: Aileen Chuang>
Corporate treasury centres helped clients manage their global finances, offering services such as foreign exchange trades, financial products and risk management, said Anthony Lin, head of Hong Kong, Greater China and North Asia, and global head of market management for transaction banking at Standard Chartered.
Story continues"Tokenisation will increase the efficiency of treasury centres," Lin said, adding that it would facilitate 24/7 settlements, instant cross-border transfers and more flexible investment redemptions, thanks to blockchain technology.
Earlier this month, Ant International subscribed to and redeemed a private tokenised Hong Kong dollar money-market fund from ChinaAMC (HK), setting a precedent for a 24/7 investment cycle that delivered nearly instant liquidity, according to Katie He, the fund house's head of product and strategy.
"Traditionally, there has been a trade-off between yield and liquidity - like a see-saw - but in a tokenised environment, we've essentially put them on the same side," she said. "Clients can still enjoy returns, regardless of their investment horizon."
Tokenised funds have been called the "third revolution" in asset management, with assets under management (AUM) projected to grow rapidly, although still modest compared with mutual funds and exchange-traded funds.
A white paper published by Boston Consulting Group, Aptos Labs and Invesco in October last year suggested that the AUM of tokensied funds could surpass US$600 billion by 2030, up from about US$2 billion at the end of 2024.
A general view of Hong Kong's Victoria Harbour. Photo: May Tse alt=A general view of Hong Kong's Victoria Harbour. Photo: May Tse>
The potential demand for tokenised assets was significant, with digital wallets globally holding around US$4 trillion, according to He.
ChinaAMC (HK)'s three tokenised money-market funds - denominated in US and Hong Kong dollars and yuan, and available to retail investors - attracted over HK$5.3 billion (US$681 million) this year, an 80 per cent increase since their launch, the firm said.
For individual investors, tokenisation democratised access to assets, enabling partial investments in high-value assets and increased payment efficiency while lowering transaction costs by eliminating financial intermediaries, He said.
Investment was "an important starting point" for people interested in holding tokens, said Standard Chartered's Lin. As more real-world uses for tokens emerged, such as payments and cross-border transfers, people would find even greater motivation to engage with them, he said.
The Hong Kong Monetary Authority has begun facilitating real-value transactions using tokenised deposits and digital assets under a controlled pilot programme set to run through 2026.
Its Project Ensemble pilot has allowed 20 participants to conduct transactions and use the regulator's interoperability layer for more efficient interbank settlement.
"We in Project Ensemble believe this is the direction Hong Kong must take," Lin said.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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