TLDR:
- 61% of retail investors in HK and mainland China plan to double tokenized fund allocations.
- Active traders and high-net-worth investors target fund allocations between 16% and 26%.
- Phase 2 e-HKD pilot confirms instant settlement of tokenized funds on Aptos blockchain.
- 95% of respondents are willing to use regulated digital money for tokenized fund transactions.
Hong Kong and mainland investors are showing growing appetite for tokenized funds. A joint pilot led by Aptos Labs, Hang Seng Bank, and Boston Consulting Group (BCG) revealed that 61% of retail investors plan to double their fund allocations.
Active traders, high-net-worth individuals, and long-term investors aim to increase holdings to between 16% and 26%. The pilot tested the settlement of tokenized funds using the Hong Kong Monetary Authority’s experimental e-HKD digital currency.
Findings suggest that programmable digital money could streamline fund operations and boost liquidity for investors.
Investor Interest in Tokenized Funds
The Aptos Labs tweet highlighted that instant atomic settlement and embedded compliance were major draws for participants. Investors responded positively to features enabling immediate capital receipt, additional product access, and fund units as collateral for short-term loans.
According to the pilot, intra-day settlement replaced the standard T+1 to T+5 timeline, enhancing flexibility for both retail and institutional investors. The report noted that mainland investors showed particularly strong interest in the new mechanisms, emphasizing cross-border potential.
Retail investor behavior also reflected increased confidence. The study found that 76% of participants would adopt regulated digital money, while 95% would use it for tokenized fund transactions.
Frequent traders in Hong Kong indicated plans to allocate up to 26% of their portfolios to funds if instant settlement and programmability were enabled. Long-term investors also raised their allocations, signaling growing trust in digital money infrastructure.
Digital Money and Programmability Transform Fund Settlements
The pilot demonstrated that programmable digital money could embed compliance rules directly into transactions.
Funds could be ringfenced for eligible investments, ensuring on-chain auditability. Smart contracts allowed tokenized fund units to serve as collateral, reducing the need for intermediary processing and accelerating loan disbursements.
On-chain compliance also addressed longstanding pain points with fiat transactions. Cross-border investments often faced delays and high transaction costs due to multiple clearing channels.
The e-HKD pilot on Aptos achieved atomic settlement, meaning proceeds were available instantly after a secondary transaction confirmation. This model allowed distributors and asset managers to reduce workload while granting investors faster access to liquidity.
The study underlined the value of public-permissioned blockchains for real-world use. Aptos delivered high-speed settlement with low fees, native privacy, and full programmability.
BCG and Hang Seng Bank emphasized that broad adoption of regulated digital money could streamline operations across distributors, custodians, and tech partners. The findings reinforce the potential for Hong Kong to strengthen its role as an international wealth management hub.