Hong Kong Web3 New Dimension Empowering Global Finance

On July 1, 2025, on the occasion of the 28th anniversary of Hong Kong's return, a Space event focusing on Hong Kong's innovative practices in the Web3 and global financial sectors was successfully held. The event revolved around the theme "RWA Revolution - Hong Kong's Trillion-Dollar Assets on the Chain," gathering industry experts to discuss the opportunities and challenges of tokenizing Real World Assets (RWA).

RWA Promotes the Digital Transformation of Hong Kong's Financial Sector

The Chief Strategy Officer of a trading platform analyzes from a macro perspective, pointing out that the implementation of stablecoin legislation in the United States and Hong Kong has triggered a surge in traditional finance and Chinese securities firms' engagement in virtual assets, reflecting the trend of compliance and institutionalization of virtual assets. The United States positions itself as "on-chain digital colonialism," reinforcing the dominance of the US dollar through stablecoin and treasury bond distribution; Hong Kong, on the other hand, is positioned as "on-chain trading port," leveraging the advantages of the "one country, two systems" policy to serve as a window for attracting foreign investment into mainland assets and exploring non-US dollar clearing and settlement solutions. Stablecoins and RWA respectively represent the on-chain funding side and asset side mapping. Hong Kong promotes the internationalization of the Renminbi and the construction of an independent clearing and settlement network through RWA, occupying a unique position in global financial innovation.

Legal Compliance and Opportunities of RWA

The legal director of Mulan Investment Management pointed out that Hong Kong's attitude towards virtual assets has shifted from a misunderstanding of "money laundering" to regulatory support since 2017. The three main legal concerns regarding RWA development include: traditional financial institutions preferring private chains to ensure compliance; clear plans for custody that meet regulatory requirements; and transaction records needing to meet the "gold standard" of off-chain traditional finance. Real estate RWAs face challenges due to off-chain registration requirements, but can circumvent restrictions through rental income securitization; bonds and funds are easier to approve due to standardization. The compliance of RWAs depends on whether the underlying assets are regulated under the Securities and Futures Ordinance, with non-security assets such as spot gold having a lower compliance threshold. The potential of Hong Kong's secondary market is significant, but infrastructure is lacking, and if Hong Kong's stablecoin can support the internationalization of the RMB after its launch, it will further expand the market.

Crypto Native's Perspective on Hong Kong RWA

An industry insider stated that as an "old leek in the crypto circle," he pays attention to the RWA concept, especially when researching or investing in projects, but he holds a cautious attitude towards trading Hong Kong RWA tokens. He prefers to invest in familiar areas to increase his success rate, as being in the mainland limits his understanding of Hong Kong real estate, artworks, and other RWA assets, raising concerns about risks. He recognizes the advantages of RWA in lowering the investment threshold for high-value assets and enhancing liquidity through tokenization, but believes that personal investment requires reliable guidance.

Target User Group of RWA

The CEO of a certain company believes that the success of RWA requires buying support, and its user base can be divided into two categories: Crypto Native investors, who tend to allocate returns to traditional assets through RWA while retaining the crypto form to avoid tax and regulatory complexities; and high-net-worth individuals in traditional finance, with disposable funds exceeding 10 million HKD, who are willing to allocate a small proportion of funds to RWA to diversify risk and seek potential high returns. The Hong Kong RWA market can connect crypto and traditional finance, promote the tokenization of quality assets, and attract global capital.

The Role of Stablecoins in Promoting RWA and the Prospects of Tokenization in Hong Kong Stocks

Experts point out that the "Stablecoin Regulatory Framework" implemented on August 1, 2025, marks the world's first regulatory framework for fiat stablecoins. Hong Kong can issue stablecoins in USD or HKD, but USD stablecoins are more attractive due to their strong liquidity. Stablecoins provide efficient cross-border payment support for RWA, which develops in three stages: currency tokenization (stablecoins), bond/commodity tokenization, and stock tokenization. The U.S. leads in U.S. stock tokenization, while Hong Kong stock tokenization is difficult to achieve due to the exclusivity of the Hong Kong Stock Exchange. Hong Kong needs to accelerate innovation, explore REIT and ABS tokenization, and leverage the advantages of "one country, two systems" to attract cross-border assets, but must be wary of competitive pressure.

The Significance of Compliant Issuance of Stablecoins for RWA

The Hong Kong stablecoin regulations promote the development of RWA from the perspective of regulation and compliance. In terms of regulation, issuers must obtain licenses and establish local entities, and reserve assets must have high liquidity and be entrusted to licensed trustees to ensure transparency and security. In terms of compliance, stablecoins shorten the RWA settlement cycle to seconds, cross-chain transactions are protected from value fluctuation risks, and assets are verifiable and traceable, meeting central bank standards, which facilitates auditing and tax calculations. Stablecoins provide an efficient and transparent trading environment for RWA, promoting the issuance and circulation of digital assets.

The Role and Advantages of RWA in the Hong Kong Web3 Ecosystem

There are opinions that the RWA concept currently has many drawbacks, and the number of fraud cases has significantly increased. However, RWA has certain significance when combined with real assets, especially in the context of Hong Kong's "one country, two systems" policy and the regulatory legislation on virtual currencies, attracting numerous crypto projects and international resources. Currently, regulation is not transparent, and fraud issues are prominent, but this is also a period of industry dividends. If Hong Kong can take the lead in establishing a clear regulatory framework, it will attract more funds from the West to the East; otherwise, it may become a "follower."

The Role and Advantages of Hong Kong in Promoting RWA and Web3 Development

Hong Kong demonstrates positive progress with its stablecoin licensing system, aiming to tokenize traditional financial assets and enhance trading efficiency and smoothness through blockchain technology. The Hong Kong Securities and Futures Commission has provided compliance support for tokenized financial products, and there is hope for further internationalization of domestic asset transactions through offshore RMB stablecoins in the future. The RWA market needs to first improve the primary market issuance before the secondary market can gradually develop. Through tokenization, Hong Kong can achieve diversified sales of financial products and enhance its global competitiveness.

Hong Kong Stablecoin New Regulations and RWA Track: Building a New Infrastructure for Global Payments

The new regulations for stablecoins in Hong Kong focus on 100% reserves and a clear licensing mechanism, significantly enhancing regulatory clarity and attracting traditional financial institutions. The new regulations reduce regulatory uncertainty, enhance market trust, and facilitate the expansion of cross-border payments, DeFi, and RWA markets, but high compliance costs limit participation from small and medium-sized institutions. In Q2 2024, global stablecoin transfer volume is expected to reach $4 trillion, and Hong Kong can leverage its advantages as a financial hub to attract banks and internet companies, but in the short term, it is constrained by market size and the dominance of USD stablecoins. Several major players have entered the regulatory sandbox, targeting the $30-60 trillion B2B e-commerce payment sector to challenge the traditional Swift system.

RWA and stablecoins complement each other, compliance and ecological diversification become key

The new regulations on stablecoins are accelerating the RWA sector, with both complementing each other and laying the foundation for a new infrastructure for global payments in Hong Kong. Stablecoins provide efficient settlement for RWA, shortening financing cycles. Goldman Sachs predicts that the growth of $1 billion in stablecoins will drive $320 million in RWA on-chain, with the market potentially reaching $16 trillion by 2030. RWA attracts off-market funds, and institutional entry creates a snowball effect, while stablecoins reduce compliance costs and enhance transaction feasibility. Cross-border regulatory cooperation poses the biggest challenge, as the circulation of stablecoins on public chains must meet the enforcement requirements of multiple countries. Future leading factors include differentiated profit models, licensing competition, and ecosystem diversification. Hong Kong needs to overcome the technical and regulatory integration challenges, leveraging the advantages of "one country, two systems" to create a new global financial ecosystem that integrates stablecoins and RWA.

Conclusion

Hong Kong, with its clear regulatory framework for stablecoins and the unique advantage of "one country, two systems", has attracted several giants to enter the market, targeting the trillion-dollar cross-border payment and asset tokenization markets, challenging the dollar-dominated financial landscape. Stablecoins and RWA complement each other, injecting an efficient and transparent on-chain ecosystem into traditional finance, aiding the internationalization of the Renminbi and global capital flow. However, high compliance costs, the complexity of cross-border regulation, and the market cultivation cycle still need to be overcome. If Hong Kong can accelerate legislative innovation, improve infrastructure, and expand diversified application scenarios, it will transform from a "follower" to a "creator" in the Web3 wave, leading a new chapter in the digital transformation of global finance and writing a magnificent blueprint for the future of digital chains.