Hong Kong Retail Investors Would Double Fund Allocations If Tokenized Products Came to Market, Aptos Labs Finds
Hong Kong, 5 February 2026 – A joint study by Aptos Labs, Boston Consulting Group (BCG) and Hang Seng Bank suggests that the majority of retail investors in Hong Kong and mainland China would significantly increase their exposure to traditional funds if those products were offered in a tokenized form. The research, which combined a live pilot of programmable digital‑money settlements with a survey of 500 investors, points to a strong appetite for faster settlement, 24‑hour access and secondary‑market trading—all hallmarks of blockchain‑enabled finance.
The pilot and survey
The investigation was built around a limited‑scale pilot conducted in Hong Kong that used tokenized fund shares settled via programmable digital money. Participants could subscribe and redeem their holdings through a blockchain‑based interface, allowing the researchers to capture behavioural data in a real‑world setting.
Following the pilot, a questionnaire was distributed to 500 retail investors across Hong Kong and the Chinese mainland. Respondents were asked about their willingness to allocate capital to tokenized fund products and which features would drive adoption.
Key findings include:
| Metric | Result |
|---|---|
| Investors who would double fund allocations if tokenized options were available | 61 % |
| Respondents interested in instant settlement, 24/7 access and enhanced transparency | ≈ 97 % |
| Investors who say 24‑hour secondary trading would make a fund more attractive | ≈ 71 % |
| Preference for the type of digital money (CBDC, tokenized bank deposits, regulated stablecoins) | No material difference provided the product meets legal standards |
What drives the demand?
Although the survey touched on a range of technical possibilities, the data suggest that investors care more about the functional benefits than the underlying technology. Instant settlement was repeatedly cited as a top priority, as it eliminates the typical T+2 or T+3 settlement lag that can expose investors to market risk. Around‑the‑clock trading and the ability to liquidate positions on secondary markets were also highlighted as decisive factors.
An excerpt from the report’s executive summary underscores this sentiment: “Token‑based infrastructure is both technically viable and commercially attractive, linking clear investor demand to the next generation of financial infrastructure.” The authors note that, as stablecoins and tokenized deposits become more regulated, the marginal benefit of Central Bank Digital Currencies (CBDCs) in retail contexts may diminish.
Market context
The interest shown by Hong Kong’s retail segment aligns with a broader, global surge in tokenized real‑world assets (RWAs). Data from RWAxyz places the total value of tokenized assets at roughly US$23 billion, a more than 13 % rise over the past month alone. Major banks and fintech firms worldwide have accelerated their tokenization initiatives, ranging from tokenized equities to exchange‑traded funds (ETFs).
Hong Kong, in particular, is positioning itself as a leading regulated digital‑asset hub in the Asia‑Pacific region. A recent analysis by Amina Group ranked the city among the most active jurisdictions for digital‑asset adoption in 2025. Even with stricter cryptocurrency trading rules on the mainland, an estimated 78 million Chinese citizens hold crypto assets, indicating a sizable potential user base for compliant tokenized products.
Current state of tokenized funds in Hong Kong
Tokenized funds are already offered by a handful of platforms in the city, but most of these products are limited to primary‑market activities—that is, subscriptions and redemptions. The ability to trade fund tokens on secondary markets, an attribute that the survey identified as a major driver of investor interest, remains largely unavailable.
Regulators have been gradually expanding the legal framework for digital assets, providing a clearer pathway for secondary‑market infrastructure while maintaining anti‑money‑laundering (AML) and know‑your‑customer (KYC) safeguards. The pilot’s use of “programmable digital money”—a term that can encompass stablecoins, tokenized deposits or CBDCs—demonstrated that settlement can be performed within existing compliance boundaries.
Analyst takeaways
- Investor appetite is feature‑driven. The near‑universal desire for instant settlement and 24/7 availability suggests that any tokenized offering lacking these capabilities will struggle to attract mainstream retail capital.
- Secondary‑market liquidity is a make‑or‑break factor. More than two‑thirds of respondents indicated that 24‑hour secondary trading would increase their likelihood of investing. Platforms that can deliver secure, regulated secondary markets stand to capture the bulk of the incremental demand.
- Technology choice matters less than regulatory certainty. Respondents showed little preference for the type of digital currency used for settlement, provided it operates under a legal framework. This lowers the barrier for providers to adopt the most mature stablecoin or tokenized‑deposit solution rather than waiting for a specific CBDC rollout.
- Hong Kong is primed for scale. With a supportive regulatory environment, a large pool of crypto‑savvy retail investors and increasing institutional interest in RWAs, the city is well‑positioned to become a regional hub for tokenized fund products.
- Potential upside for fund managers. If the projected 61 % of surveyed investors were to double their fund allocations, asset managers could see a material increase in AUM, especially for products that integrate tokenization early.
Outlook
The findings from Aptos Labs, BCG and Hang Seng Bank underscore a clear market signal: retail investors in the Greater China region are ready to broaden their fund exposure if the friction points of traditional finance are removed through tokenization. As regulatory bodies continue to refine the rules around digital money and secondary‑market trading, expect a wave of new tokenized fund offerings to emerge in Hong Kong’s financial ecosystem.
For asset managers, fintech innovators and regulated exchanges, the next few months will be decisive. Those that can align with investor expectations—instant settlement, continuous market access and transparent secondary trading—are likely to capture a sizable share of the anticipated capital influx. The convergence of demand, technology and regulatory clarity may well accelerate the mainstream adoption of tokenized assets across Asia and beyond.
Source: https://thedefiant.io/news/research-and-opinion/hong-kong-investors-would-double-fund-allocations-with-tokenized-products-aptos-labs
