Hang Seng Launches Physical Gold ETF with Tokenization Option

Hang Seng Investment Management (HSIM) has successfully listed its new Hang Seng Physical Gold ETF (Stock Code: 3031) on the Hong Kong Stock Exchange (HKEX). This product is notable for integrating traditional asset security with modern digital asset technology, offering investors a unique mechanism for gold exposure.

Unlike conventional gold ETFs, the Hang Seng Physical Gold ETF provides an innovative tokenization option. Leveraging Distributed Ledger Technology (DLT), this feature allows investors to convert their ETF units into fractional digital tokens representing ownership of the underlying physical gold. This aims to significantly enhance liquidity, lower the minimum investment threshold, and provide a more efficient mechanism for trading and transfer.

The ETF is fully backed by allocated physical gold bullion stored securely in vaults, assuring investors of the underlying asset’s integrity. HSIM emphasized that the offering is designed to appeal to both institutional and retail investors seeking a secure hedge against market volatility, coupled with the efficiency and transparency offered by digital token technology.

This launch aligns with the broader strategy of Hong Kong to promote fintech adoption and position itself as a leading virtual asset hub, marking a significant step in the convergence of conventional finance and the growing digital asset ecosystem.

Source: Hang Seng launches physical gold ETF with tokenization option