Hang Seng Investment has launched a new physically backed gold exchange-traded fund on the Hong Kong Stock Exchange, introducing a tokenized class of units issued on Ethereum. The Hang Seng Gold ETF tracks the LBMA Gold Price AM and holds bullion in designated Hong Kong vaults, combining conventional commodity exposure with blockchain-based fund administration.
The tokenized units are initially issued on Ethereum, with the prospectus allowing for expansion to other public blockchains. HSBC is acting as the tokenization agent, though the units are not yet available for subscription and will only be released after regulatory approvals are finalized. Trading and redemption will be limited to qualified distributors, maintaining controls consistent with traditional ETF distribution.
The launch reflects Hong Kong’s broader strategy to integrate digital asset infrastructure into regulated financial markets. It also underscores growing institutional interest in using tokenization to improve settlement efficiency and operational transparency without altering investor protections.
