Hong Kong clears first regulated silver tokens, 1:1 backed

Hong Kong's Securities and Futures Commission granted regulatory clearance for the city's first silver tokenization project, enabling Eddid Financial and Timeless Resources Holdings to issue blockchain-based Silver Tokens backed one-to-one by physical silver.

The tokens are designed to give investors exposure to silver through digital units recorded on a blockchain. Each token represents one ounce of silver held in trust to protect investor ownership.

The SFC reviewed the design, issuance process, custody arrangements, and on-chain framework of the offering before granting clearance. The structure links each token's value to identified silver reserves.

The initiative is intended to bring commodity exposure onto digital rails under oversight. By tying each token to a specific ounce, the design aligns the token with the underlying metal and seeks to make trading and settlement more efficient.

Real-world asset tokenization converts physical or traditional financial assets such as metals, real estate, or bonds into digital tokens on a blockchain. It can allow fractional ownership, improve auditability of token supply, and reduce settlement frictions. Use in lending and yield strategies depends on applicable rules and platform support.

Alongside the launch, Eddid Financial announced a global recruitment drive to expand in key international markets. The companies did not share a timetable for wider distribution or for secondary market venues for the tokens.