- GF Securities and HashKey launched GF Token in HK, offering daily-interest tokenized assets.
- The USD GF Token is benchmarked to SOFR and issued on HashKey’s proprietary blockchain.
- Hong Kong’s new policy backs RWA tokenization as firms expand crypto-related services.
GF Securities, one of the top Chinese brokerage firms, has launched tokenized securities called “GF Token” in Hong Kong. The securities will be issued in three currencies: the U.S. dollar, the Hong Kong dollar, and offshore yuan, thereby strengthening Hong Kong’s role as a major hub for cryptocurrencies and digital assets.
The issuance of GF Tokens is based on a strategic partnership with HashKey, which is one of the largest digital asset platforms in Hong Kong. This partnership is expected to support the growing tokenization of real-world assets (RWAs) in Hong Kong. HashKey highlighted the importance of this milestone, describing it as a key step toward tokenizing RWAs in Hong Kong and paving the way for broader on-chain collaboration in the securities industry.
Tokenized Securities Target Institutional Investors
The GF Token products accrue daily interest and offer daily redemption options. These tokenized securities are explicitly aimed at high-net-worth individuals and institutions, which illustrates their suitability among professional financial market participants.
The USD version of the GF Token is pegged to the Secured Overnight Financing Rate (SOFR), an indicator of overnight borrowing costs secured by Treasury securities. However, the precise benchmark rates of the Hong Kong dollar and the offshore yuan versions have not been disclosed. The issuance of all tokens will be carried out through HashKey Chain, and distribution will occur at a later stage.
GF Securities CEO Zeng Chao emphasized the importance of the partnership, noting that the project will facilitate establishing a first-mover lead in Hong Kong’s fast-developing digital financial environment. Chao considers the partnership instrumental in establishing a strong and competitive tokenized securities market in the city.
Related: Hong Kong Expands Crypto Push With Digital Asset Policy 2.0
Hong Kong Boosts Tokenization and Crypto Framework
This most recent development is closely in line with an updated policy on digital assets in Hong Kong known as “Policy Statement 2.0.” Published by the Financial Secretary, Paul Chan, the policy outlines how the city will increase crypto licensing frameworks and encourage the tokenization of RWA. The government aims to diversify the real-life applications of digital assets and further enhance financial innovation in the city.
The initiative by GF Securities follows a broader trend of Chinese brokerages gaining a foothold in the growing crypto market in Hong Kong. Recently, Guotai Junan International was granted regulatory licenses to launch cryptocurrency trading services in the Hong Kong market, sparking significant interest in the market. China Merchants Securities and Huatai International are also making efforts to ensure regulatory improvement to allow the trading of digital assets.
The entry of GF Securities is a competitive gesture that further builds confidence in Hong Kong’s new regulatory environment. The city remains attractive to large financial institutions that are eager to explore the increased opportunities offered by digital finance and other blockchain technologies.
