BCG Report: Tokenization in Hong Kong Could Double the Fund Industry, 61% of Investors Willing to Increase Investment

BCG, Aptos Labs, and Hang Seng Bank white papers state that tokenization in Hong Kong could double the scale of asset management. Based on the e-HKD+ pilot, a survey of 500 retail investors found that 61% are willing to double their investments, and 97% are interested. Tokenization addresses counterparty risk, reduces costs, and enables 24/7 liquidity. BCG predicts that the pivotal point in 2026 requires moving from pilot projects to full commercial scale.

e-HKD+ Pilot Validates Technical and Business Feasibility

The white paper proposes a strategic framework for expanding the fund industry through tokenization, drawing on the latest pilot results from the Hong Kong Monetary Authority (HKMA) e-HKD+ Phase Two plan. The report indicates that through the pilot project, Boston Consulting Group (BCG), Aptos Labs, and Hang Seng Bank concluded that a token-based financial infrastructure is both technically feasible and commercially attractive.

The report also highlights that adopting this technology can solve current pain points in fund management, such as counterparty risk and operational costs, while enabling continuous, round-the-clock liquidity. Traditional fund transactions require multiple intermediaries, with settlement cycles typically T+2 or T+3 (2 to 3 business days after trade), during which counterparty default risk exists. Tokenized funds can settle instantly, significantly reducing this risk.

Operational costs are also notably lowered. Traditional fund management involves complex reconciliation, clearing, and custody processes, each requiring manual operations and system maintenance. Tokenization automates these processes and records them on the blockchain, reducing intermediaries and human errors. BCG’s pilot data shows that tokenization can cut fund management operational costs by 30% to 40%.

Round-the-clock liquidity is another major advantage of tokenized funds. Traditional funds can only be bought and sold during specific trading hours, whereas tokenized funds can be traded on the blockchain 24/7. This flexibility is highly attractive to global investors, especially for cross-time-zone trading and responding to sudden market events. During the pilot, participant feedback on 24/7 trading was very positive, considering it one of the most revolutionary features of tokenized funds.

Three Major Technical Advantages of Tokenized Funds

Real-time Settlement: Eliminates T+2/T+3 delays, reduces counterparty risk

Lower Operational Costs: Automates processes, reduces management costs by 30%-40%

24/7 Liquidity: Enables around-the-clock trading beyond traditional hours

The pilot program identified three priority directions for promotion: regulatory compliance, business model innovation, and technological scaling to meet institutional standards. The white paper calls on industry participants and regulators to “coordinate execution” for successful deployment of this mature technology. “We have achieved proof of concept and business validation. Once the market removes friction, investors are ready to increase investments,” said David Chan, Managing Director and Partner at BCG. “Financial institutions must now move beyond pilots. Those integrating these features into their core operations will win this new capital.”

Stunning Data: 61% Will Double Investments

The report shows that the pilot project received “strong demand” from investors, especially for features like 24/7 trading. A survey of 500 retail investors conducted in May and June 2025 found that if tokenized products offered real-time settlement and round-the-clock access, 61% of respondents would be willing to double their fund allocations. At the same time, 97% expressed strong interest in enhanced features of tokenized funds and digital currencies (including CBDCs and stablecoins).

These figures are highly impactful. A willingness to double investments by 61% suggests that if tokenized funds are fully launched, the asset management scale of Hong Kong’s fund industry could double from current levels. Hong Kong, as a major asset management hub in Asia, currently manages trillions of dollars. If half of investors reallocate funds, the new inflow could reach hundreds of billions of dollars.

The 97% interest rate is even closer to a near-universal consensus. It indicates that core features of tokenized funds—instant settlement, 24/7 trading, increased transparency—resonate with real investor needs. The inefficiency and high costs of traditional funds have long been complaints among investors, and tokenization offers a clear solution. This high level of acceptance provides a strong market foundation for promoting tokenized finance in Hong Kong.

It’s worth noting that this survey targeted retail investors. Results from institutional investors could be even more positive. Institutions face more complex fund management challenges and have a greater need to reduce costs and improve efficiency. If 61% of retail investors are willing to double their investments, the willingness among institutions could be even higher.

This shift from traditional “message-based” settlement systems—often limited by delays and reconciliation costs—to token-based finance embeds value, ownership, and compliance directly into digital tokens. This paradigm shift is not just a technological upgrade but a fundamental overhaul of financial infrastructure.

2026: From Pilot to Commercial Scale

“We believe 2026 will be a decisive turning point. The industry must now shift from testing technical feasibility to building a full commercial scale,” said Zhang Yuehong, Managing Director and Partner at BCG. “No single institution can modernize the financial system alone. Banks, regulators, and technology providers need to work together to turn these pilots into new market standards.”

This statement reveals a key challenge in advancing tokenized finance: coordination. The technology is mature, and market demand has been validated, but actual implementation still requires multi-party collaboration. Banks need to upgrade systems and train staff, regulators must develop suitable legal frameworks for tokenization, and technology providers need to ensure infrastructure stability and security. Any lag from one party could slow down the entire process.

Hong Kong has a unique advantage here. As an international financial center, Hong Kong boasts a comprehensive financial infrastructure and an open regulatory environment. The HKMA’s e-HKD+ plan provides policy support and a testing ground for tokenized finance. Active participation from local financial institutions like Hang Seng Bank ensures that pilot results can quickly translate into commercial products. The involvement of tech providers like Aptos Labs offers high-performance blockchain infrastructure.

From a global perspective, Hong Kong’s push for tokenized finance is gaining urgency. Financial centers such as Singapore, Switzerland, and the UAE are also actively positioning themselves in tokenized assets. The first to establish a mature tokenized financial ecosystem will have a competitive advantage in the next-generation financial infrastructure race. If Hong Kong successfully doubles its fund industry scale, it will strengthen its position as Asia’s financial hub.

For investors, Hong Kong’s push toward tokenized finance offers new opportunities. Tokenized funds promise better user experiences and potentially higher returns. Lower operational costs could lead to reduced management fees, directly increasing net yields for investors. Additionally, 24/7 trading capabilities allow investors to adjust their positions more flexibly and seize market opportunities at any time.

In summary, the development of tokenized funds in Hong Kong, supported by pilot projects and strategic collaborations, is poised to significantly transform the asset management landscape, enabling a more efficient, transparent, and accessible financial ecosystem that could double the industry’s scale by 2026.