BCG: Tokenization or reshaping Hong Kong's fund market, with potential to double in size

Boston Consulting Group (BCG), Aptos Labs, and Hang Seng Bank jointly released a new white paper indicating that Hong Kong’s asset management industry is poised to achieve exponential growth through tokenized financial infrastructure. The study is based on the second-phase pilot results of the Hong Kong Monetary Authority’s e-HKD+ project, validating the feasibility of token-based financial models at both technological and commercial levels.

The report proposes a strategic framework for upgrading the fund industry through tokenization. The research team found that traditional fund systems face significant bottlenecks in settlement cycles, counterparty risk, and operational costs, while on-chain token models can embed value, ownership, and compliance logic directly into digital assets, enabling more efficient and frictionless operations. The pilot also demonstrated that this model can support 24/7 liquidity and near real-time fund settlements.

The white paper outlines three priority areas: first, strengthening regulatory compliance and transparency; second, promoting the implementation of new business models; third, expanding technological capabilities to meet institutional-level demands. David Chan, Managing Director and Partner at BCG, stated that the market already has the technological validation and commercial foundation, and the key is for financial institutions to integrate these capabilities into their core business systems.

On the demand side, the project also sends positive signals. A survey of 500 retail investors in Hong Kong conducted from May to June 2025 showed that if tokenized funds could offer instant settlement and 24-hour trading, 61% of respondents would be willing to double their fund allocations, and 97% expressed strong interest in tokenized funds and digital currency-related features.

Zhang Yuehong, Managing Director and Partner at BCG, pointed out that 2026 could become a critical turning point for industry transformation, as the financial system needs to move from the “pilot validation” stage to “large-scale application.” He emphasized that collaboration among banks, regulators, and technology providers will determine whether tokenization can become the new standard for Hong Kong’s fund industry.