Introduction
In August 2025, Guotai Junan International (GTJAI) and Ant Digital Technologies jointly launched two innovative tokenized structured financial products on the Ethereum blockchain, an initiative that marks a significant step forward in Hong Kong’s exploration of real-world asset (RWA) tokenization under a compliant framework.
Product Overview
1. Fixed-Income Redeemable Token
- Daily Interest Accrual: Investors can monitor returns on a daily basis, offering higher transparency compared to traditional structured notes.
- T+0 Redemption: Same-day redemption significantly enhances liquidity management for investors.
- DLT Integration: While fundamentally a fixed-income product, tokenization enables faster settlement cycles and real-time yield tracking.
2. Capital-Protected Token Linked to U.S. ETFs
- Equity Exposure with Downside Protection: Returns are tied to U.S. ETFs, such as those tracking the S&P 500, while principal is preserved regardless of market volatility.
- On-Chain Structuring: By migrating structured product logic to blockchain infrastructure, automation, transparency, and cost-efficiency are significantly improved.
Technology Architecture: From Local Compliance to Global Visibility
The issuance process begins on AntChain, where products undergo regulatory-compliant registration and management, then extends via cross-chain bridges to Ethereum. This dual-layer structure achieves:
- Local compliance through a permissioned infrastructure
- Global visibility and liquidity via Ethereum’s public blockchain ecosystem
This framework enables international investors to observe, evaluate, and potentially engage with products originating from Hong Kong, laying the foundation for cross-border RWA connectivity.
Why This Matters
1. Liquidity Innovation
Tokenization transforms traditionally illiquid fixed-income products into flexible, same-day redeemable instruments, ideal for cash management strategies.
2. Structural Efficiency
Capital-protected, equity-linked products deployed on blockchain reduce issuance, settlement, and redemption costs while enhancing transparency.
3. Cross-Border Potential
Hong Kong is advancing the integration of regulated local blockchains with global public networks. GTJAI’s initiative highlights a potential path for Mainland China’s financial instruments to access global capital via tokenization.
Regulatory Context & Market Comparison
Legal Recognition Gap
Currently, public blockchains like Ethereum are not fully recognized in Hong Kong/China for securities registration and settlement. These pilots are confined to regulatory sandboxes.
Infrastructure Preferences
Regulators in the region favor permissioned or consortium chains (e.g., AntChain), emphasizing data localization and regulatory oversight.
Market Readiness
Compared to Europe, which already has licensed custodians, on-chain payment systems, and audit frameworks, Hong Kong’s ecosystem is still nascent, relying on local tech players to bridge the infrastructure gap.
Further Reading
DLT Pilot Regime (EU)
In force since March 2023, the EU legally recognizes distributed ledgers for issuing and settling traditional financial instruments within regulatory limits:
- Bonds ≤ €1B
- Equities ≤ €500M
- Funds ≤ €500M
This enables DLT to serve as a legal alternative to centralized securities depositories (CSDs).
GF Token (Guangfa Securities, 2024)
A Hong Kong-based tokenized government bond ETF, issued via a local permissioned chain. While aligned with risk-averse, stable-return goals, its institutional adoption remains limited compared to more advanced platforms like AntChain.
BOCI x UBS Structured Notes (June 2023)
BOCI and UBS issued a 28M CNH structured note on Ethereum, the first RMB-denominated structured product on a public blockchain from Asia, with significant experimental value.
Conclusion
This collaboration between GTJAI and Ant Digital demonstrates a forward-thinking, compliant approach to RWA tokenization, leveraging both public and private blockchain infrastructure. It positions Hong Kong not just as a regulatory sandbox, but as a future-ready gateway between China’s regulated financial markets and global decentralized capital networks.