Real World Asset Tokenization: How Hong Kong Seeks Breakthroughs in Global Competition

Recently, the tokenization of real-world assets (RWA) is accelerating into the mainstream financial sector, sparking intense competition globally. In this competition, Hong Kong is striving to build a new generation of financial infrastructure, leveraging its clear regulatory framework, open market strategy, and proactive policy innovation, in an effort to seize the initiative in the global tokenization wave.

Currently, RWA tokenization is no longer a distant concept, but a real transformation that is reshaping the way capital is formed, assets are distributed, and financial opportunities are accessed. At present, more than $24 billion of RWA is circulating on public chains, covering various fields such as yield-bearing U.S. Treasuries, private credit pools, tokenized commodities, and real estate. This attempt, once regarded as a "crypto curiosity experiment", is now becoming an important part of global financial infrastructure, quietly reconstructing the underlying pipelines of capital markets.

In this context, Hong Kong released the "Digital Asset Development Policy Statement 2.0" on June 26, launching the "Leap" regulatory framework. This framework expands the regulatory scope to include stablecoin issuers, custodians, and RWA platforms, signaling that Hong Kong not only allows tokenization but also actively advocates for it. The "Leap" framework covers multiple aspects such as legal and regulatory simplification, expansion of tokenized products, promotion of application scenarios, and development of talent and partnerships. By establishing a stablecoin licensing system, clarifying the regulatory framework for tokenized ETFs, and continuing previous pilot projects in digital bonds and green finance, it aims to foster a broader vision for tokenization.

Compared to other markets, Hong Kong's policies demonstrate a more open and inclusive attitude. For example, Singapore has adopted a more cautious approach, primarily focusing on institutional participation and restricting retail investors; whereas Hong Kong allows retail users to participate under the premise of establishing clear and appropriate suitability rules, thus expanding the potential market space. In contrast to the EU's regulatory framework for crypto assets and the fragmented regulatory tug-of-war in the U.S., Hong Kong offers a more unified, principles-based system that provides the regulatory clarity needed for innovators and investors.

However, simply building a good regulatory environment is not enough to ensure the success of tokenized assets. The real challenge lies in creating tokenized products that the market truly needs, is willing to hold, trade, and trust. Many tokenization projects fail not due to technical or regulatory issues, but because of a lack of real business value and market demand. Successful tokenized assets must address real problems for a clearly defined user group.

Some successful cases have demonstrated the potential of tokenization of assets. For example, tokenized U.S. Treasury products have gained widespread adoption among global savers due to their stable and transparent yields, particularly in emerging markets where secure income channels are lacking. Additionally, some protocols have opened new pathways in the private credit sector by matching institutional borrowers with crypto-native lenders, achieving on-chain transparent risk control, making the products bidirectionally available. The key to these successful cases lies in the perfect alignment of assets, users, and packaging.

The local ecosystem in Hong Kong is also developing in this direction. The Financial Management Authority's "Project Ensemble" is experimenting with tokenization in scenarios such as bonds, funds, carbon credits, charging station infrastructure, and supply chain finance. Although these projects have significant potential, a "blockbuster" product that can truly integrate the three elements of assets, audience, and use cases on a large scale has yet to emerge.

Hong Kong has laid a solid foundation for the development of tokenized assets, including a clear regulatory environment, institutional recognition, and credible projects through public-private collaboration. As the "bridgehead" of China's digital asset strategy, Hong Kong's significance goes far beyond its local market. However, future competition will primarily be determined by the fit between products and the market, rather than more policy support.

Key questions include: Can Hong Kong attract Southeast Asian savers to invest in genuinely profitable stablecoin products? Can it connect China's industrial assets to global capital through compliant digital packaging methods? Can it incubate a new generation of RWA products that are not only legal and compliant but also have genuine market demand? The answers to these questions will determine whether RWA can become a lasting financial transformation and whether Hong Kong can become a global leader in tokenization.

If Hong Kong can successfully respond to these challenges, it will not only become a leader in the field of tokenization but is also likely to become one of the important forces defining the future of finance. In this rapidly changing era, Hong Kong has the opportunity to shape the future of global finance, but this requires continuous innovation, flexible policy adjustments, and keen insights into market demands.