Hong Kong Regulator Approves First Tokenized Real Estate Investment Fund

Hong Kong has taken another major step toward becoming a digital asset hub, as the Securities and Futures Commission (SFC) has approved the launch of the city’s first tokenized real estate investment fund (REIF).

The fund, structured under existing collective investment scheme regulations, will allow qualified investors to buy fractional ownership in commercial and residential properties through blockchain-based tokens. By using tokenization, the fund reduces entry barriers, improves liquidity, and enables near-instant settlement of transactions compared to traditional property funds.

Market analysts say the move could reshape property investment in Hong Kong, one of the world’s most expensive real estate markets. Traditionally, real estate funds in the region have required large minimum investments and offered limited redemption flexibility. Tokenization aims to change that by offering smaller investment units that can be traded on regulated digital asset exchanges.

The SFC emphasized that investor protection remains a priority. The approved fund must follow strict custody, disclosure, and compliance requirements, ensuring that token holders have the same rights and protections as traditional fund investors.

Industry leaders view this approval as a milestone for both the property and blockchain sectors. “Tokenization brings liquidity to one of the most illiquid asset classes,” said a senior executive from a Hong Kong-based fintech firm. “It’s the start of a new era where real estate can be traded like stocks.”

With this approval, Hong Kong positions itself alongside Singapore, Switzerland, and the UAE, which have also advanced frameworks for tokenized real-world assets. If successful, the model could expand to infrastructure, green finance, and cross-border property investment.