KUN Group has secured three regulatory licences in Hong Kong, expanding its ability to provide securities dealing, investment advisory and asset management services, including permitted virtual asset activities. The approval covers Type 1, Type 4 and Type 9 regulated activities under the Securities and Futures Commission (SFC), marking a significant development in the group’s digital finance strategy. The company is also targeting the first quarter of 2027 for the rollout of tokenised investment product distribution, including money market funds, bond funds and gold-related products, as it looks to connect traditional investment services with emerging digital asset infrastructure.

Hong Kong’s digital asset industry continues to develop as financial institutions and technology companies explore regulated ways to connect traditional investment products with blockchain-based financial infrastructure.

KUN Group’s latest regulatory milestone adds another development to this landscape. A Hong Kong subsidiary of the group has been granted licences by the Securities and Futures Commission (SFC) to conduct Type 1, Type 4 and Type 9 regulated activities.

The approval follows an approval-in-principle received in September 2026. The formal licences provide the regulatory foundation for the subsidiary to expand its securities dealing, investment advisory and asset management activities in Hong Kong, subject to the conditions imposed by the regulator.

The development is particularly relevant to the virtual asset market because the Type 1 licence includes permission for virtual asset dealing services under applicable conditions. KUN plans to conduct these activities through SFC-licensed virtual asset trading platforms.

The company is positioning the regulatory approval as part of a wider strategy to build its presence across securities, virtual assets and investment management.

Three Licences Expand KUN’s Regulated Financial Services

The three licence categories cover different parts of Hong Kong’s securities and investment services ecosystem.

• Type 1 – Dealing in Securities: Enables regulated securities dealing activities, with the subsidiary’s licence also including permission for virtual asset dealing services under applicable conditions.
• Type 4 – Advising on Securities: Covers securities advisory activities and, within the relevant licence conditions, virtual asset advisory services.
• Type 9 – Asset Management: Provides a regulatory basis for asset management services, with KUN identifying professional investors as its target client segment.

Together, these permissions give the subsidiary a broader regulatory foundation than a business focused exclusively on one financial service.

For KUN, the combination creates an opportunity to connect investment distribution, advisory services and asset management within a regulated business structure.

However, licensing should not be confused with unrestricted authorization to offer every digital asset product. The specific activities a licensed corporation can undertake depend on its formal licence conditions, regulatory requirements, client eligibility and applicable platform arrangements.

This distinction is important in Hong Kong, where virtual asset services operate within a regulatory framework designed to address investor protection, market integrity and financial crime risks.

Tokenised Investment Products Targeted for Q1 2027

Beyond securities dealing and advisory services, KUN is preparing to enter the distribution market for tokenised investment products.

The company is targeting the first quarter of 2027 for an initial rollout covering three categories:

• Tokenised money market funds.
• Tokenised bond funds.
• Tokenised gold-related investment products.

The planned service would position KUN as a distributor rather than necessarily the issuer of the underlying investment products. Its objective is to expand investment options for eligible clients while supporting portfolio diversification and asset allocation.

Tokenisation involves representing ownership interests or rights in traditional financial assets through digital tokens recorded on blockchain infrastructure.

For investment providers, the technology can potentially improve transaction processing, recordkeeping, operational efficiency and access to distribution channels. However, these benefits depend on the legal structure, custody arrangements, settlement mechanisms and technological implementation.

Hong Kong’s regulatory environment is also developing to accommodate this market.

In April 2026, the SFC updated its framework for tokenised investment products, setting out requirements for tokenisation of SFC-authorised investment products and allowing qualifying products to be distributed through regulated intermediaries.

The regulator also established a framework for secondary trading of eligible tokenised products on SFC-licensed virtual asset trading platforms, subject to requirements covering fair pricing, orderly trading, liquidity and disclosure. SFC Apps+2

The scale of the market is beginning to become more visible. According to the Hong Kong government’s November 2026 update, the SFC had authorised 13 tokenised money market funds and one tokenised gold investment product as of September 2026. Two gold ETFs also had tokenised classes. Government Information Centre

This provides an established regulatory and market context for KUN’s proposed distribution strategy.

Nevertheless, the company’s planned product launch should not be interpreted as confirmation that all proposed funds have already received regulatory authorization. Product eligibility, distribution permissions and investor suitability requirements will remain important considerations.

Stablecoin Payments Add Another Dimension to KUN’s Strategy

KUN’s expansion is not limited to investment products and virtual asset trading.

The group will participate in Singapore FinTech Festival 2026 from November 18 to 20, engaging with financial institutions and technology partners on digital finance developments.

A key part of its participation will be a fireside discussion featuring Founder and Group CEO Dr. Louis Liu and Vidit Agrawal, Vice President of Partnerships and Business Development for APAC at Circle.

Titled Making Stablecoin Payments Work for Business — Powered by Circle, the session is scheduled for November 20 at 2:00 p.m. at the Frontier Stage, Hall 6, Singapore EXPO, according to the festival’s published agenda. Singapore FinTech Festival+1

The discussion is expected to examine how stablecoins can support business payment operations, including cross-border transfers, local payouts, transaction reconciliation and compliance.

Stablecoins are digital assets designed to maintain a relatively stable value against a reference asset, commonly a fiat currency. They are increasingly being explored for international settlement and business payment applications.

However, practical adoption involves more than transferring digital tokens. Businesses also need reliable conversion arrangements, local banking connectivity, compliance controls and clear transaction records.

The participation of KUN and Circle at the festival places these operational questions within a broader discussion about the integration of digital assets into established financial services.

Hong Kong’s Digital Finance Strategy Creates a Wider Opportunity

KUN’s licensing development reflects a wider transformation in Hong Kong’s financial services market.

The city is seeking to develop its position in virtual assets and tokenised financial products while maintaining regulatory oversight comparable to traditional securities markets.

This approach creates opportunities for financial institutions, digital asset service providers, investment managers and technology companies to develop services around regulated blockchain-based financial infrastructure.

For KUN, the combination of securities dealing, virtual asset advisory, asset management and planned tokenised product distribution provides a framework for expanding across several connected areas of financial services.

The next milestones will be the operational rollout of its virtual asset services, the introduction of eligible tokenised investment products and the development of business payment applications involving stablecoins.

Ultimately, the commercial significance of the licences will depend on how effectively KUN converts regulatory permissions into accessible, compliant and commercially viable services.

For Hong Kong’s digital asset ecosystem, the announcement represents another example of how traditional financial regulation and blockchain-based investment infrastructure are increasingly intersecting.

Market Landscape

Hong Kong’s digital finance industry is moving beyond cryptocurrency trading toward regulated investment products, tokenisation and institutional digital asset services.

Three important industry trends:

1. Institutional tokenisation: Traditional investment products are increasingly being represented through blockchain-based structures, creating new distribution and settlement possibilities.

2. Regulated virtual asset services: Licensing frameworks are bringing securities dealing, investment advisory and digital asset activities into more structured regulatory environments.

3. Stablecoin business payments: Financial technology providers are exploring stablecoins for international settlement, local payouts and business treasury operations.

The intersection of these trends creates opportunities for companies that can combine traditional financial services expertise with digital asset infrastructure.

Top Insights

• KUN Group’s Hong Kong subsidiary has secured SFC Type 1, Type 4 and Type 9 licences covering securities, advisory and asset management activities.
• Type 1 licensing includes permission for virtual asset dealing through SFC-licensed trading platforms, subject to applicable regulatory conditions.
• KUN is targeting Q1 2027 to introduce tokenised money market funds, bond funds and gold-related investment product distribution.
• Hong Kong’s tokenisation market is expanding, with 13 authorised tokenised money market funds recorded by September 2026.
• KUN’s planned engagement with Circle at Singapore FinTech Festival highlights its interest in stablecoin payments and institutional digital finance.

Get in touch with our fintech expert