Safeheron Shines at INCLUSION·Conference on the Bund, Exploring the Future of Fund Tokenization

The 2025 INCLUSION·Conference on the Bund, a premier fintech conference, recently concluded successfully at the Shanghai Huangpu World Expo Park. Centered on the theme “Reshaping Innovative Growth,” the summit brought together top leaders from technology and finance to explore the future of cutting-edge innovation. As the sole invited digital asset custody provider, Safeheron was honored to participate in this prestigious event and extends its sincere gratitude to Invest Hong Kong (InvestHK) for the invitation. As part of the “Hong Kong Team” led by InvestHK, Safeheron joined other leading Web3 enterprises in showcasing the dynamic innovation within the digital asset sector.

During the summit, Safeheron’s Founder & CEO, Wade Wang, was a featured speaker at the “Navigating a Changing World: Hong Kong’s ‘Super-Connector’ Role and Global Opportunities” forum. His insights during the panel discussion, “Is Fund Tokenization Ready to Take Off?” captured significant attention.

Wade began by emphasizing that the large-scale adoption of fund tokenization hinges on a multi-dimensional infrastructure that integrates technology, security, compliance, and liquidity. “The first principle of blockchain is the private key; holding the key means holding the asset,” he stated. “However, over the past decade, institutional digital asset losses have amounted to $75 billion due to security breaches, stemming from risks like internal misconduct and external hacks.” This underscores the critical need for a robust security foundation, whether for traditional institutions entering the market or for the circulation of tokenized assets. Safeheron, leveraging its MPC (Secure Multi-Party Computation) technology, is dedicated to eliminating the single point of failure associated with private keys, providing institutions with a secure and efficient digital asset account system that addresses this core industry demand.

While optimistic about the prospects of fund tokenization, Wade also highlighted two primary challenges to its implementation.

First is the development of an integrated infrastructure for security and compliance. He explained that once fund shares are on-chain, all interactions rely heavily on blockchain infrastructure, demanding bank-grade security across the entire lifecycle—from custody and transfers to redemption. Furthermore, legal definitions and compliance requirements for security tokenization vary across jurisdictions. The underlying technology must be designed with compliance flexibility to prevent institutions from facing significant legal and operational risks.

Second is the challenge of distribution and liquidity for tokenized funds. Wade noted that while tokenization enhances the flexibility of asset distribution, it also introduces new complexities related to KYC/AML (Know Your Customer/Anti-Money Laundering) and investor suitability checks. Establishing an efficient, transparent, and auditable platform for share transfers—while ensuring full compliance—is crucial to earning investor trust and driving the industry forward.

In conclusion, the future of fund tokenization is promising, but its success depends on a solid foundation built upon three pillars: security, compliance, and ecosystem efficiency. Safeheron will continue its role as a foundational infrastructure provider for the digital asset ecosystem, committed to building a stable and reliable bridge between traditional finance and the world of digital assets, and helping the industry advance securely and compliantly into a new era.