Hang Seng debuts gold ETF with Ethereum-based tokenized units

Hang Seng Investment Management (HSIM) has announced the launch of a new physical gold Exchange Traded Fund (ETF) that includes a specialized tokenized unit class built on the Ethereum network. This pioneering move represents a significant step for traditional finance (TradFi) integrating Distributed Ledger Technology (DLT) into regulated investment products within Hong Kong.

The new unit class, identified as HSAU, is based on the widely adopted ERC-20 token standard. These tokenized units offer investors fractional ownership, allowing for significantly smaller investment amounts compared to conventional ETF shares, thereby drastically lowering the barrier to entry for retail investors seeking exposure to physical gold.

The core innovation lies in settlement efficiency and accessibility. By leveraging the Ethereum blockchain, the HSAU units facilitate near-instantaneous, 24/7 settlement, successfully bypassing the standard T+2 settlement cycle typically required for traditional securities trading. This enhanced liquidity and convenience are central to the fund’s appeal.

HSIM’s launch follows recent regulatory advancements by the Hong Kong Securities and Futures Commission (SFC) aimed at promoting the tokenization of Real-World Assets (RWAs) within authorized investment vehicles. Market analysts view this debut not only as a successful implementation of blockchain technology in finance but also as confirmation of Hong Kong’s commitment to establishing itself as a leading global hub for crypto and Web3 innovation.

Source: Hang Seng debuts gold ETF with Ethereum-based tokenized units