DL Holdings Group (HKG:1709) saw its stock price skyrocket by 56.97% in Thursday's pre-market trading session, following the company's announcement of a significant tokenization initiative. The Hong Kong-based firm revealed its intentions to tokenize up to HK$500 million in real-world assets, including interests in its DL Tower and three managed funds.
According to a filing with the Hong Kong Stock Exchange, DL Holdings plans to distribute up to HK$60 million worth of tokenized assets in kind to eligible shareholders, clients, and platform users. This move represents a strategic shift towards blockchain technology and asset digitization, potentially opening up new avenues for investment and liquidity in the company's portfolio.
The tokenization project, which is being developed in collaboration with blockchain firm Asseto, will initially focus on interests in DL Tower and three managed funds as the first batch of underlying assets. However, the initiative remains subject to regulatory approval from the Securities and Futures Commission. Participation in the tokenization program will require identity verification, acknowledgment of risk disclosures, and for Hong Kong investors, qualification as professional investors, underlining the company's commitment to regulatory compliance and investor protection.
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