TheMonsoon Ledger

Weekly Brief No. 9 ·

Hong Kong opens round-the-clock trading of tokenised funds

On 26 October the SFC approved the first secondary trading of tokenised SFC-authorised funds, ChinaAMC's HKD and USD digital money market funds, on a licensed virtual asset trading platform, around the clock. Ethereum's developers held Glamsterdam back on the Hoodi testnet while ChainSecurity and DDAO analyse its gas changes.

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In the week of 26 October 2026 the Securities and Futures Commission (SFC) in Hong Kong approved the first secondary trading of tokenised SFC-authorised funds on a licensed virtual asset trading platform, open around the clock. The SFC does not name the chain the funds use, so the approval says nothing yet about public chains beyond the SFC’s existing rule that a fund may use one only with added controls. Ethereum’s core developers kept the Glamsterdam upgrade off the Hoodi testnet while two security firms analyse how its gas changes affect contracts already on mainnet.

Round-the-clock trading of tokenised funds in Hong Kong

On 26 October the SFC approved secondary trading of two tokenised SFC-authorised funds on an SFC-licensed virtual asset trading platform (VATP), available 24 hours a day, which began that day (para 1). The funds are the ChinaAMC HKD Digital Money Market Fund and the ChinaAMC USD Digital Money Market Fund (Note 1), from China Asset Management (Hong Kong). The SFC calls it the world’s first secondary trading of tokenised public funds. Its release names no platform, market maker or chain. Until now holders could only subscribe and redeem through distributors (Regulatory Wire).

The approval is the first under the SFC’s circular of 20 April 2026 on secondary trading of tokenised SFC-authorised investment products, reference 26EC23 (Regulatory Wire). The circular sets the terms the ChinaAMC funds now trade under:

  • Retail investors may trade, on the platform (para 8), under the platform’s existing VATP rules (para 9).
  • The platform executes a trade only if the client’s account already holds the cash or units to cover it (para 10).
  • The platform shows a “Price Deviation Alert” when a trade price moves significantly from the fund’s indicative net asset value (NAV), reminds investors they can subscribe or redeem at NAV instead, and applies controls such as trading bands (para 12).
  • The product provider should arrange “at least one market maker” and give “not less than three months’ notice” before ending the arrangement (para 15).
  • The platform publishes indicative NAV, “typically updated at least every 15 seconds during trading hours” (para 20).
  • The product’s key facts statement sets out the settlement process, settlement time and pre-funding requirement (para 19).

Any other authorised fund that adds these features needs the SFC’s prior consultation and approval, assessed case by case (paras 24 and 25). The SFC says the first batch covers only tokenised money market funds and that it may broaden the product scope over time (release, para 5). Hong Kong’s other tokenised money market fund classes on the Pilot Scorecard, from CSOP and Bosera, have not been approved for this trading.

For public chains, the SFC’s tokenisation circular of the same date says that “Product Providers should not use public-permissionless blockchain networks without additional and proper controls”, with a permissioned token as the example (para 13). ChinaAMC describes its tokenised share classes as sitting on a “public permissioned blockchain” and has not named the chain or published a contract address; third-party trackers list the HKD class as an ERC-20 token on Ethereum (Pilot Scorecard). Neither the release nor the circular says whether a trade on the platform moves tokens between wallets onchain or changes only the platform’s own records. Under the Hood sets out where Hong Kong’s tokenised funds keep their register: offchain with the trustee or registrar, with the token as a copy.

Singapore sells tokenised funds through licensed distributors and platforms, and India’s Demat 2.0 pilot plans secondary trading of tokenised bonds in a later stage, on request-for-quote platforms (State of Play; Regulatory Wire).

Round-the-clock trading makes a tokenised money market fund usable as cash outside the fund’s dealing hours, and Hong Kong needs that before Ensemble deposits can settle against it. A holder can now sell units at any hour instead of waiting for the fund to deal, and the circular builds in the liquidity for that, with at least one market maker and an indicative NAV updated at least every 15 seconds (paras 15 and 20). The SFC ties the approval to its next step: tokenised funds could later settle trading proceeds in tokenised deposits developed with the Hong Kong Monetary Authority (HKMA) under Project Ensemble (release, para 3, Note 3). The release does not say what trades settle in today. No document describes ChinaAMC’s units being used as cash this way, and no trading volume, spread or market maker has been published, so this read rests on inference until they are.

Pilots

  • ChinaAMC tokenised money market fund, Hong Kong: an expand decision and an event review for the SFC’s 26 October approval. The rubric is unchanged, with settlement offchain until a trade is shown to settle on the ledger.
  • HSBC RedCoin, Hong Kong: an event review on 27 October records the launch on PayMe on 23 October, a private EVM network on which HSBC runs every validator, and a stage of pilot while the wallet opens to PayMe users in phases. On 31 October HSBC reported HKD 84,191,125.17 in circulation, reserve assets of HKD 85,191,125.17 held in cash, and a seven-day increase of HKD 3,521,913.65. The HSBC HK App wallet is still marked “coming soon”.
  • CMBI tokenised USD money market fund, Hong Kong fund sold in Singapore through DigiFT: the scheduled review on 26 October moves scale to repeat and stage to production, on mints and burns in most months of 2026 on the Ethereum contract.
  • FundBridge Wellington ULTRA, Singapore: the scheduled review on 26 October also moves scale to repeat and stage to production, on mints in five months of 2026 and regular redemptions on Ethereum. No Solana deployment was found, so the claim of one stays open.

Technology

Glamsterdam held back on Hoodi

On the All Core Devs testing call of 26 October, Ethereum’s core developers decided to delay Glamsterdam on the Hoodi testnet by at least a week, and to wait for an analysis of EIP-8037 and EIP-8038 by ChainSecurity and DDAO expected to take about two weeks, according to the call’s automatically generated summary (ACDT #102). The summary records that “any fixes should prioritize contract upgrades over spec changes whenever possible”, and that a developer will contact the affected parties. No new Hoodi or mainnet date is set. EIP-8037, which raises the gas cost of adding to Ethereum’s state, was still in Last Call on 31 October, with a deadline of 1 November. ChainSecurity says that after Glamsterdam, “Even with unchanged contract code, a failure path that previously reverted can now complete”, and advises developers to recalculate gas budgets under both gas schedules (ChainSecurity). Pilots on Ethereum mainnet in Hong Kong and Singapore include Anchorpoint’s licensed stablecoin HKDAP and the ULTRA fund, whose token sits behind an upgradeable proxy (Weekly Brief No. 8). None of their issuers has said whether its contracts are affected.

ERC-8262 moves to Review

On 28 October ERC-8262, “Zero-Knowledge Compliance Oracle”, moved to Review (commit). It defines zero-knowledge (ZK) proofs that a transaction passed anti-money laundering (AML), sanctions and anti-structuring checks without revealing the transaction data. Its table of jurisdictions lists “Singapore (MAS)” as jurisdiction 3, alongside the EU, the US, the UK and the UAE, with risk-score bands and a rule that Singapore does not accept unsigned screening proofs. The bands are set by the ERC’s authors, not by the Monetary Authority of Singapore (MAS). The ERC names no oracle operator or screening provider, says it “could serve as a ZK identity provider within an ERC-3643 deployment”, and makes no claim that its reference implementation is audited.

On the site

What to watch

  • 5 November: All Core Devs Execution call #249 (Ethereum Magicians).
  • 9 November: All Core Devs testing call #103; the 2 November call is skipped (ACDT #102).
  • Around 9 November: the ChainSecurity and DDAO analysis of EIP-8037 and EIP-8038, expected about two weeks after 26 October (ACDT #102).
  • 30 November: comments close on MAS’s proposal that licensed stablecoin issuers join the Financial Industry Disputes Resolution Centre (Regulatory Wire; State of Play).
  • No date: the platform, market maker and chain for ChinaAMC’s trading, and the first volumes (Regulatory Wire).
  • No date: the HSBC HK App wallet for RedCoin (HSBC).