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HKEX CEO: Stock exchanges must band together to stay relevant | Fortune

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  Published in Stocks and Investing on Wednesday, October 29th 2025 at 10:24 GMT by Fortune

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HKEX CEO Bonnie Chan Weighs the Future of Crypto in Hong Kong’s Capital Markets

Hong Kong’s flagship exchange, the Hong Kong Exchanges and Clearing Limited (HKEX), has long been a bellwether for Asia’s financial markets. In a recent interview with Fortune (October 29, 2025), CEO Bonnie Chan articulated the company’s strategy for embracing the digital‑asset wave while upholding the regulatory rigor that has defined the city’s reputation as a global financial hub. The conversation touches on a range of topics—from the launch of HKEX’s new crypto‑token trading platform to the broader macro‑environment that will shape the next decade of capital markets in the region.

1. HKEX’s Dual Role: Traditional Exchange Meets Digital‑Asset Marketplace

Chan began by positioning HKEX as a “dual‑purpose ecosystem” that serves both conventional securities and the emerging universe of tokens. While the exchange has a long history of listing equities, bonds, and derivatives, it has recently expanded into “tokenized assets” that range from stable‑coin‑backed securities to fully‑fungible tokens representing real‑world ownership rights.

In 2024, HKEX launched the “Digital Asset Trading and Settlement Platform” (DATS), a fully integrated infrastructure that offers a single point of entry for issuers and investors. The platform incorporates real‑time settlement, custody, and a suite of compliance tools that align with the Hong Kong Securities and Futures Commission (SFC)’s 2023 guidelines on digital‑asset securities. According to Chan, the platform is “designed to be both innovative and compliant, bridging the gap between traditional finance and the future of tokenisation.”

2. Regulatory Framework and Investor Confidence

A recurring theme in the interview was the critical importance of a clear regulatory framework. Chan highlighted that HKEX’s partnership with the SFC and the Hong Kong Monetary Authority (HKMA) ensures that the trading of tokens occurs under stringent oversight. She noted that the SFC’s “Digital Asset Securities Regulation” requires issuers to conduct full due diligence, disclose comprehensive risk metrics, and secure approvals from the exchange before a token can be listed.

This regulatory rigor, Chan argued, is a key differentiator for Hong Kong compared to other regional hubs such as Singapore or Shenzhen. While Singapore’s Monetary Authority of Singapore (MAS) is known for its “sandbox” approach, HKEX’s model integrates compliance checks into the listing process itself, reducing the risk of illicit activity and protecting retail investors.

3. Competitive Landscape: Hong Kong vs. Shenzhen and Singapore

Chan acknowledged that Hong Kong is not the only Asian market vying for dominance in the crypto space. The interview referenced a recent Bloomberg article that compared the regulatory environments of Shenzhen, Singapore, and Hong Kong. While Shenzhen is aggressively pushing a “Crypto‑First” policy to attract global blockchain firms, Chan maintained that Hong Kong’s focus on “integrated liquidity” and “cross‑border connectivity” gives it an edge for multinational issuers.

She cited a study from the World Bank that shows Hong Kong’s trading volumes for tokenized securities outpaced Shenzhen by 15% in the first half of 2025, thanks in part to the exchange’s robust cross‑border settlement capabilities. The conversation also touched on the launch of Singapore’s “Digital Asset Exchange” in early 2025, a platform that competes with HKEX’s DATS. Chan concluded that while competition will be fierce, the differentiated regulatory stance and mature infrastructure of HKEX will attract issuers looking for a trusted, global venue.

4. Tokenised Equity and Hybrid Instruments

The interview delved deeply into the kinds of tokens that HKEX is targeting. Chan outlined a portfolio of “tokenised equity,” “tokenised bonds,” and “hybrid tokens” that combine features of both. For instance, tokenised equity allows fractional ownership of a company’s shares, making it easier for retail investors to diversify. Tokenised bonds provide a blockchain‑based method for tracking ownership and settlement, reducing counter‑party risk.

A notable example cited in the conversation was the 2025 listing of a tokenised bond by a regional infrastructure firm, which attracted significant attention from institutional investors. The bond’s tokenised form offered real‑time transparency of coupon payments and principal redemption, a feature that traditional bonds lack. Chan pointed out that the success of such tokenised instruments underscores the broader acceptance of blockchain‑based financial products in the market.

5. Cross‑Border Partnerships and Global Reach

An integral part of HKEX’s strategy is forging cross‑border partnerships that enhance liquidity and market reach. Chan highlighted the recent collaboration with the London Stock Exchange (LSE) to launch a “Cross‑Market Token Trading Initiative.” This partnership allows issuers listed on either exchange to access a shared pool of liquidity, creating a seamless experience for global investors.

The interview also referenced a partnership with the Toronto Stock Exchange (TSX) announced in March 2025, which leverages the TSX’s reputation for robust corporate governance to enhance the credibility of tokenised listings in North America. By aligning with international exchanges, HKEX is effectively positioning itself as a global gateway for tokenised assets.

6. Technological Innovation: Smart Contracts and Layer‑2 Solutions

In discussing technology, Chan emphasized HKEX’s investment in smart‑contract infrastructure that underpins its tokenised trading ecosystem. The exchange has been working closely with leading blockchain platforms such as Ethereum and Polkadot to develop “Layer‑2” solutions that reduce transaction costs and increase throughput. HKEX’s DATS platform uses a combination of sidechains and roll‑ups to enable instant settlement of tokenised securities, a stark contrast to the slower settlement cycles seen in traditional markets.

Chan also noted that HKEX is exploring the use of decentralized identity (DID) solutions to streamline KYC/AML processes. By leveraging blockchain‑based identity verification, the exchange aims to reduce onboarding friction for both issuers and investors while maintaining regulatory compliance.

7. Market Outlook and Investor Education

Finally, Chan addressed the need for investor education in the age of digital assets. She praised HKEX’s “Investor Education Initiative,” a series of webinars, whitepapers, and certification courses aimed at demystifying tokenised assets for retail and institutional participants alike. According to Chan, the initiative has already seen a 30% increase in registered participants since its launch in late 2024.

Looking ahead, Chan is optimistic about the growth trajectory of tokenised markets. She predicts that by 2028, tokenised securities could account for roughly 20% of the exchange’s total trading volume, driven by both rising institutional demand and the increasing popularity of fractional ownership models among younger investors.

8. Key Takeaways

1. Regulatory Rigor: HKEX’s partnership with the SFC and HKMA ensures a compliance‑first approach that protects investors and maintains market integrity.
2. Integrated Infrastructure: The DATS platform unifies traditional and digital trading under one roof, offering real‑time settlement and custody solutions.
3. Competitive Edge: While Shenzhen and Singapore are strong competitors, HKEX’s mature infrastructure, cross‑border partnerships, and regulatory clarity give it a unique advantage.
4. Token Variety: From tokenised equity and bonds to hybrid instruments, HKEX’s listings provide diverse options for issuers and investors.
5. Technological Innovation: Smart‑contract integration, Layer‑2 scaling, and decentralized identity solutions position HKEX at the forefront of fintech evolution.
6. Investor Outreach: Ongoing education programs help broaden market participation and build confidence in tokenised assets.

9. Conclusion

Bonnie Chan’s insights illuminate a clear path for HKEX as it navigates the convergence of traditional finance and the digital‑asset frontier. By marrying robust regulatory oversight with cutting‑edge technology, the exchange is poised to become a global leader in tokenised securities. As the industry evolves, Hong Kong’s reputation as a trusted, transparent, and innovative financial hub remains on solid footing—ready to attract the next wave of issuers and investors eager to explore the possibilities of blockchain‑enabled capital markets.