Hang Seng Investment Introduces Tokenized Gold ETF in the Hong Kong Market

Hang Seng Investment has introduced an innovative exchange-traded fund product—a gold ETF that combines physical assets with modern blockchain technology. This latest product, known as the Hang Seng Gold ETF, will be listed on the Hong Kong Stock Exchange by the end of January 2025, marking a significant step in integrating traditional assets with digital infrastructure.

Innovation in Tokenization for Gold ETF Products

The uniqueness of the Gold ETF launched by Hang Seng Investment lies in its implementation of tokenization technology. The fund offers unlisted but already tokenized units, enabling ownership of gold assets with transparency and efficiency through blockchain. With tokenization, unit holders can manage their assets more easily via digital platforms, creating a more seamless experience compared to conventional ETF products.

Technology and Infrastructure Support

HSBC serves as the primary tokenization agent for this project, providing institutional credibility to the product. Currently, Ethereum has been selected as the main blockchain to support the Gold ETF operations, leveraging its reliability and mature ecosystem. However, Hang Seng Investment does not rule out integrating other public blockchains in the future, as long as they meet strict security standards and are supported by robust distributed ledger technology.

Subscription and Redemption Mechanism

Investors holding units of the tokenized fund will have the flexibility to subscribe or redeem through distributors that meet strict requirements. This structure is designed to provide optimal liquidity and accessibility for both institutional and retail clients interested in digital gold exposure.