16th September 2026
By Shubhii Verma
BlackRock has received approval from Hong Kong’s securities regulator to launch its first tokenised fund in the city, marking another step in the asset manager’s expansion into blockchain-based financial products.
How BlackRock’s Tokenised HKD Money Market Fund Will Work
The BlackRock HKD Digital Liquidity Fund will combine blockchain technology with the conventional structure of a money market fund, allowing investors to conduct transactions through both traditional financial channels and on-chain systems.
According to BlackRock, the fund aims to provide liquidity, stability and income by investing in high-quality, short-term Hong Kong dollar money market instruments. These investments are expected to include government bills and deposits, giving the product a focus on preserving capital while generating returns from short-term assets.
Hong Kong Expands Its Framework for Tokenised Investment Products
The approval comes as Hong Kong continues building a regulatory framework for tokenised investment products and digital assets. The Securities and Futures Commission introduced its framework for tokenised investment products in November 2023, providing guidelines for financial institutions seeking to bring blockchain-based investment offerings to the market.
By March 2026, 13 tokenised investment products had been introduced under Hong Kong’s developing ecosystem. These included the first retail tokenised money market fund, launched by China Asset Management (Hong Kong) in February 2025.
Tokenisation Gains Ground Among Global Asset Managers
BlackRock’s new fund will add a major global asset manager to the growing list of institutions using blockchain technology to modernise traditional investment products. Tokenisation can enable assets and transactions to be represented on blockchain networks, potentially supporting more efficient settlement and greater integration between conventional and digital financial infrastructure.
The launch also highlights the growing role of Hong Kong as a regional centre for regulated digital-asset innovation. Regulators have been working to establish rules that allow financial firms to explore tokenisation while maintaining investor protections and established market standards.
BlackRock, headquartered in New York, is the world’s largest asset manager. The company reported US$15.3 trillion in assets under management at the end of June 2026.
BlackRock Expands Its Tokenisation Strategy in Asia
The Hong Kong approval gives BlackRock an opportunity to expand its tokenisation strategy in Asia while offering investors access to a Hong Kong dollar-denominated money market product through both established and blockchain-enabled channels. The move could further accelerate institutional adoption of tokenised funds as financial markets increasingly explore blockchain-based infrastructure.
The product is designed to bridge traditional finance and emerging digital infrastructure, reflecting increasing interest from financial institutions in regulated tokenisation. For investors, the structure could provide familiar money market exposure while introducing blockchain-based transaction capabilities within Hong Kong’s financial system and regulatory environment.
