Hang Seng Investment Management launches a new physically backed gold ETF in Hong Kong, tracking the LBMA Gold Price AM. The ETF holds gold bars meeting LBMA standards stored in Hong Kong vaults. Retail investors can trade units on the secondary market. The ETF trades in Hong Kong dollars with a board lot size of 50 units.

Hang Seng plans to introduce tokenized unlisted units of the gold ETF, recorded on blockchain. HSBC will issue digital tokens representing ownership of fund units. Transactions will be recorded on a public blockchain, with Ethereum initially used. Tokenized units can only be subscribed to or redeemed through approved distributors.

Gold prices surged 4% on Thursday, nearing $5,530 per ounce as investors seek safe-haven assets amid growing economic uncertainty. NYSE and ICE are developing a blockchain platform for trading tokenized stocks and ETFs with 24/7 trading and instant settlement. Sygnum predicts tokenization will become mainstream by 2026, with up to 10% of new bond issuance tokenized.

Read more at Cointelegraph: Hang Seng Taps Ethereum for Planned Tokenized Gold Fund Units