Hong Kong Web3 New Dimension Empowering Global Finance

On the occasion of the 28th anniversary of Hong Kong's return, an event focusing on Hong Kong's innovative practices in the Web3 and global financial sectors was successfully held. This event revolved around the theme "RWA Revolution - Hong Kong's Trillion-Dollar Asset Tokenization," bringing together industry experts to discuss the opportunities and challenges of tokenizing real-world assets (RWA).

RWA Drives the Digital Transformation of Finance in Hong Kong

The Chief Strategy Officer of a trading platform analyzes from a macro perspective, pointing out that the implementation of stablecoin regulations in the United States and Hong Kong has triggered a wave of traditional finance and Chinese brokerage firms entering the virtual asset space, reflecting the trend of compliance and institutionalization of virtual assets. The U.S. strategically positions itself as "on-chain digital colonialism," strengthening dollar hegemony through the distribution of stablecoins and U.S. Treasury bonds; Hong Kong, on the other hand, is positioned as "an on-chain trading port," leveraging the advantages of "one country, two systems" to attract foreign investment as a window for mainland assets and exploring non-dollar settlement solutions. Stablecoins and RWA (Real World Assets) represent the mapping of on-chain funding and asset sides respectively. Hong Kong promotes the internationalization of the Renminbi and the construction of an independent settlement network through RWA, occupying a unique position in global financial innovation.

Legal Compliance and Opportunities of RWA

From a legal perspective, Hong Kong's attitude towards virtual assets has shifted from a "money laundering" misunderstanding to regulatory support since 2017. The three major legal concerns regarding the development of RWA include:

1. Traditional financial institutions prefer private chains to ensure compliance;
2. The custody must have a clear plan that meets regulatory requirements;
3. Transaction records must meet the "gold standard" of traditional finance off-chain.

Real estate RWA faces 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 RWA depends on whether the underlying assets are regulated, with lower compliance thresholds for non-securities assets. The secondary market in Hong Kong has great potential, but lacks infrastructure; if Hong Kong's stablecoin can support the internationalization of the RMB after its launch, it would further expand the market.

Crypto Native's View on Hong Kong RWA

A Crypto Native practitioner stated that, as a "veteran in the crypto space," he pays attention to the concept of RWA, especially when conducting project research or investment, but he holds a cautious attitude towards trading Hong Kong RWA tokens. He prefers to invest in familiar areas to increase his winning rate, as he is located in the mainland and has limited understanding of RWA assets such as Hong Kong real estate and artworks, worrying about investment risks. He recognizes the advantages of RWA in lowering the investment threshold for high-value assets and enhancing liquidity through tokenization, but personal investments require reliable guidance.

Target User Group of RWA

The CEO of RWA Group believes that the success of RWA requires buying support, and its user base is divided into two categories:

1. Crypto native investors tend to allocate their gains to traditional assets through RWA while retaining the crypto form to avoid tax and regulatory complexities;
2. Traditional high-net-worth individuals in finance, with disposable funds exceeding 10 million Hong Kong dollars, are willing to allocate a small proportion of their funds to RWA to diversify risks and pursue potential high returns.

This type of user may encounter cryptocurrency for the first time, participating in RWA investments through stablecoins and wallets in Hong Kong. The Hong Kong RWA market can connect cryptocurrency with traditional finance, promoting the tokenization of quality assets and attracting global capital.

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

The "Stablecoin Regulatory Framework" implemented on August 1, 2025, marks the world's first regulatory framework for fiat-backed stablecoins, positioning stablecoins as payment settlement tools. 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 phases: currency tokenization (stablecoins), bond/commodity tokenization, and equity tokenization. The U.S. leads in equity tokenization through U.S. stocks, while Hong Kong stock tokenization is difficult to achieve due to exchange monopolies. 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 from the U.S.

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. On the regulatory side, issuers need to obtain licenses and establish local entities, while reserve assets must have high liquidity and be entrusted to licensed custodians to ensure transparency and security. In terms of compliance, stablecoins shorten the settlement cycle of RWA to seconds, cross-chain transactions are immune to 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 views that the concept of RWA is currently being hyped, with an increase in fraud cases. However, RWA has certain significance when combined with actual assets, especially under the backdrop of Hong Kong's "one country, two systems" policy and recent regulatory legislation on virtual currencies, which has attracted numerous crypto projects and international resources to Hong Kong. Currently, the regulation is still opaque, and the issue of fraud is prominent, but this is also a period of dividends for the industry. It is suggested that if Hong Kong can take the lead in establishing a clear regulatory framework, it will attract more funds from the West to flow into the East; otherwise, it may become a "follower."

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

Although Hong Kong has made slow progress in regulatory legislation, it has shown positive developments through the stablecoin licensing system. The goal is to tokenize traditional financial assets and enhance trading efficiency and smoothness through blockchain technology, especially in the issuance of financial products in the primary market. This, combined with the development of stablecoins, opens up international market sales channels. The Hong Kong Securities and Futures Commission has provided compliance support for tokenized financial products, and in the future, it is expected to further facilitate the internationalization of domestic assets through offshore RMB stablecoins. The RWA market needs to first improve the issuance in the primary market before the secondary market can gradually develop. Through tokenization, Hong Kong can achieve diversified sales of financial products and enhance global competitiveness.

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

Hong Kong's new stablecoin regulations are centered around 100% reserves and a clear licensing mechanism, enhancing regulatory clarity and attracting traditional financial institutions. The new regulations reduce regulatory uncertainty, bolster market trust, and facilitate the expansion of cross-border payments, DeFi, and RWA markets, but high compliance costs limit the participation of small and medium-sized institutions. In Q2 2024, global stablecoin transfer volume is expected to reach $4 trillion, and Hong Kong can leverage its financial hub advantages to attract banks and internet companies; however, it is temporarily constrained by market size and the dominance of USD stablecoins. Several industry giants have entered the regulatory sandbox, targeting the $30-60 trillion B2B e-commerce payment sector, challenging the traditional Swift system.

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

New regulations for stablecoins are accelerating the RWA sector, with both complementing each other and laying the foundation for Hong Kong's global payment infrastructure. Stablecoins provide efficient settlement for RWA, shortening financing cycles, with predictions that the market could reach $16 trillion by 2030. RWA attracts off-market funds, and the entry of institutions creates a snowball effect; stablecoins reduce compliance costs and enhance transaction feasibility. Cross-border regulatory collaboration is the biggest challenge, as the circulation of stablecoins on public chains must comply with the law enforcement requirements of multiple countries. Future dominant factors include differentiated profit models, ecological diversification, and licensing competition. Hong Kong needs to overcome the technical and regulatory adjustment and leverage the advantages of "one country, two systems" to create a new global financial ecology that integrates stablecoins and RWA.

Conclusion

Hong Kong, with its clear regulatory framework for stablecoins and the unique advantage of "one country, two systems," is attracting multiple giants to enter the market, aiming at the trillion-dollar cross-border payment and asset tokenization market, challenging the dollar-dominated financial landscape. Stablecoins complement RWA, injecting an efficient and transparent on-chain ecosystem into traditional finance, aiding the internationalization of the RMB and the flow of global capital. 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 "trendsetter" in the Web3 wave, leading a new chapter in the digital transformation of global finance and writing a magnificent blueprint for the future of the digital chain.