Hong Kong Advances On-Chain Finance with GF Token Launch

Hong Kong is advancing its on-chain finance initiatives with a significant push towards tokenized assets. GF Securities, a major Chinese brokerage, has collaborated with HashKey to launch a new class of tokenized financial instruments called "GF Token." These tokens are tailored for institutional and high-net-worth investors, offering daily interest accumulation and flexible redemption options. The tokens are denominated in major currencies, including the U.S. dollar, Hong Kong dollar, and offshore yuan. Notably, the U.S. dollar version of the token is pegged to the Secured Overnight Financing Rate (SOFR), a widely recognized benchmark in traditional finance.

The GF Token is built on HashKey Chain and is expected to be distributed soon, marking one of the first real-world asset (RWA) tokenization ventures involving a major Chinese brokerage in Hong Kong. Zeng Chao, CEO of GF Securities (Hong Kong), described the launch as a strategic move to reinforce the firm’s early-mover advantage in the rapidly evolving digital asset space. He also emphasized that the collaboration with HashKey sets the stage for future growth in on-chain financial services.

This development aligns with a new policy direction from Hong Kong’s government. Financial Secretary Paul Chan recently unveiled “Policy Statement 2.0,” which outlines fresh support for tokenized real-world assets and the expansion of crypto licensing. This policy shift is part of a broader effort to enhance liquidity and accessibility in the digital asset market. Other major players are also moving in this direction. For instance, Guotai Junan International has secured approval for crypto trading services, while firms like Huatai International and China Merchants Securities are seeking similar regulatory upgrades.

The race to tokenize traditional financial instruments is intensifying, and Hong Kong appears determined to stay ahead. The region’s government has announced plans to regularize the issuance of tokenized government bonds and incentivize the tokenization of real-world assets. This includes supporting the secondary trading of tokenized ETFs on licensed platforms and introducing unified crypto regulations, tokenization plans, and stablecoin licensing to drive global competitiveness.

The updated digital asset policy, known as Policy 2.0, aims to strengthen Hong Kong’s digital asset strategy by expanding regulation, tokenization, and talent development initiatives. This comprehensive approach is designed to enhance the region’s status as a global leader in digital finance. The policy also includes the LEAP framework, which provides a structured approach to market development and regulatory oversight.

In summary, Hong Kong’s push towards on-chain finance with tokenized assets is gaining momentum, driven by strategic partnerships and supportive government policies. The introduction of GF Token and the broader regulatory framework are expected to accelerate the adoption of digital assets and on-chain financial services in the region.