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Hang Seng launched a physically backed gold ETF with a tokenized share class.
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The tokenized units are issued on Ethereum and supported by HSBC.
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The product bridges traditional ETFs with blockchain-based fund infrastructure.
Gold ETF Meets Onchain Infrastructure
Hang Seng Investment has launched a new physically backed gold exchange-traded fund that also includes a tokenized class of units issued on Ethereum. The Hang Seng Gold ETF debuted on the Hong Kong Stock Exchange under the ticker 03170 and tracked the LBMA Gold Price AM, with underlying bullion stored in Hong Kong vaults.
The fund rose around 9% during early Asia trading, launching amid a broader rally in gold prices.
How the Tokenized Units Work
Alongside its traditional ETF structure, the fund introduces tokenized units that represent ownership on a public blockchain. These units are initially issued on Ethereum, with the prospectus allowing for potential expansion to other blockchains over time.
HSBC is acting as the tokenization agent, but the tokenized units are not freely tradable on secondary markets. Investors must subscribe or redeem through approved distributors, and issuance will only begin once all regulatory approvals are finalized.
Hong Kong’s Tokenization Strategy
The launch aligns with Hong Kong’s broader push to position itself as a regulated crypto and tokenization hub. Local regulators have encouraged financial institutions to experiment with blockchain-based fund infrastructure under regulatory oversight, including pilots using tokenized deposits and digital assets.
The product highlights how traditional asset managers are using tokenization to modernize fund issuance without altering investor protections.
