A new report from Aptos Labs, Boston Consulting Group and Hang Seng Bank says retail investors in Hong Kong and mainland China will invest more in funds if tokenized products with faster settlement and 24/7 access are available.
The report is based on a pilot in Hong Kong that tested tokenized funds settled using programmable digital money. In a survey of 500 retail investors in Hong Kong and mainland China, 61% said they would double their capital allocation if tokenized funds were available.
Almost all respondents (approximately 97%) said they were interested in features such as instant payments, 24-hour access, and increased transparency. Meanwhile, around 71% said they would be more likely to invest if they had access to secondary trading 24/7.
These findings highlight how highly investors value practical features. Perhaps even more important than the specific technology used to make it happen. It also highlights that interest in tokenization is steadily increasing around the world, with major banks and financial companies increasing their focus on tokenized products.
The global tokenized real-world asset market is currently around $23 billion, up more than 13% in the past month, according to RWAxyz data.
“Our conclusion is simple: token-based infrastructure is technically viable, commercially attractive, and connects clear investor demand to the next generation of financial infrastructure,” the report said. “That said, as regulated stablecoins and tokenized deposits mature, demand for CBDCs in retail scenarios may be limited.”
The findings also found that there is little difference in investor preferences between different types of digital money (i.e. central bank digital currencies, tokenized bank deposits, or regulated stablecoins) as long as they offer the same functionality and operate under a legal framework.
Tokenized funds are already available in Hong Kong, but most products are currently limited to subscriptions and redemptions, with little access to secondary transactions, the report said.
The report comes as Hong Kong continues to expand its digital asset framework. Amina Group’s report identifies Hong Kong as one of the most actively regulated digital asset hubs in Asia. Furthermore, an estimated 78 million Chinese citizens hold cryptocurrencies, despite restrictions on crypto trading on the mainland.
