Hong Kong regulator approves tokenized securities plans
According to BlockBeats, Guotai Junan International announced that the Hong Kong Securities and Futures Commission (SFC) has determined there are no further issues with its submitted business plans for the distribution of tokenized securities and the issuance of digital bonds. On January 21, 2025, Guotai Junan International submitted a wealth management business plan to the SFC, aiming to distribute tokenized securities to clients and provide related advisory services. The plan includes tokenized securities linked to various underlying assets, such as structured products (including structured notes and over-the-counter derivatives), SFC-recognized and non-recognized funds, and bonds.
Tokenized securities refer to traditional financial instruments, such as stocks, bonds, and funds, managed digitally using distributed ledger technology (DLT), such as blockchain. Essentially, they are traditional securities repackaged using tokenization to achieve a technological transformation in their form.