Hong Kong Embraces the Web3 Era, Creating a New Global Financial Landscape

On the occasion of the 28th anniversary of Hong Kong's return, an online event focusing on Hong Kong Web3 and global financial innovation was successfully held. The event centered around the theme "RWA Revolution - Hong Kong's Trillion-Dollar Assets on the Chain," bringing together industry experts to discuss the opportunities and challenges of tokenizing Real World Assets (RWA).

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 sparked a trend of traditional finance and Chinese brokerages laying out virtual assets, reflecting the trend of compliance and institutionalization of virtual assets. He positions the U.S. strategy as "on-chain digital colonialism," reinforcing the dollar's hegemony through the distribution of stablecoins and U.S. Treasury bonds; Hong Kong is positioned as "an on-chain trading port," utilizing the advantages of the "one country, two systems" to attract foreign investment as a window for mainland assets, exploring non-dollar settlement solutions. He emphasizes that stablecoins and RWA represent the mapping of the on-chain funding side and the asset side, 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.

The legal director of an investment management company pointed out that Hong Kong's attitude towards virtual assets has shifted from a "money laundering" misunderstanding to regulatory support since 2017. The three main legal concerns regarding the development of RWA include: traditional financial institutions prefer private chains to ensure compliance; custodial solutions need to be clearly defined to meet the requirements of the Securities and Futures Commission; transaction records must comply with the traditional financial "gold standard" off-chain. Real estate RWA faces challenges due to off-chain registration requirements, but can circumvent restrictions through the securitization of rental income; bonds and funds are easier to approve due to standardization. He further clarified that the compliance of RWA depends on whether the underlying assets are regulated under the Securities and Futures Ordinance, as non-securities assets like physical gold have lower compliance thresholds. The secondary market in Hong Kong has great potential, but the infrastructure is lacking. If Hong Kong's stablecoin can support the internationalization of the Renminbi after its launch, it will further expand the market.

The CEO of a certain group believes that the success of RWA requires buy-side support, with its user base divided into two categories: Crypto Native investors, who find it difficult to double their investments due to high cryptocurrency prices and are inclined to allocate profits to traditional assets through RWA; and traditional high-net-worth individuals in finance, who are cautious about traditional investments due to economic downturns and are willing to allocate a small percentage of funds to RWA to diversify risk. He emphasized that the Hong Kong RWA market can connect crypto with traditional finance, promote the tokenization of quality assets, and attract global capital.

A principal pointed out that the "Stablecoin Regulation Ordinance" 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 USD or HKD stablecoins, 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. He believes that Hong Kong needs to accelerate innovation, explore REIT and ABS tokenization, and leverage the advantages of the "one country, two systems" framework to attract cross-border assets, while being wary of competitive pressures from the United States.

A certain KOL believes that the Hong Kong stablecoin regulations promote the development of RWA from the perspectives of regulation and compliance. In terms of regulation, issuers need to obtain relevant licenses and establish local entities, and the reserve assets must have high liquidity and be entrusted to licensed trustees to ensure transparency and security. Regarding compliance, stablecoins shorten the RWA settlement cycle to the second level, cross-chain transactions are insulated from value fluctuation risks, assets are verifiable and traceable, meet central bank standards, and facilitate auditing and tax calculations.

A certain Web3 partner expressed affirmation of Hong Kong's promotion of RWA and Web3 development, believing that although Hong Kong has started slowly in regulatory legislation, it has shown positive progress through the stablecoin licensing system. He pointed out that Hong Kong's goal is to tokenize traditional financial assets, enhancing trading efficiency and smoothness through blockchain technology, especially in the primary market for issuing financial products, in conjunction with the development of stablecoins to open international market sales channels. He emphasized that the RWA market needs to first improve the issuance in the primary market before the secondary market can gradually develop.

Hong Kong's new stablecoin regulations focus on 100% reserves and a clear licensing mechanism, significantly enhancing regulatory clarity and attracting traditional financial institutions. The new rules 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 transaction volumes are expected to reach $4 trillion, and Hong Kong can leverage its advantages as a financial hub to attract banks and internet companies, though in the short term, it is constrained by market size and the dominance of US dollar stablecoins. Several giants have entered the regulatory sandbox, targeting the $30-60 trillion B2B e-commerce payment space, challenging the traditional Swift system.

New regulations for stablecoins are accelerating the RWA sector, with both complementing each other, laying the foundation for Hong Kong's global payment infrastructure. Stablecoins provide efficient settlement for RWA, shortening the financing cycle, with a projected growth of $1 billion in stablecoins driving $320 million in RWA on-chain, potentially reaching a $16 trillion market by 2030. RWA attracts off-market funds, and institutional entry creates a snowball effect, while stablecoins reduce compliance costs and enhance transaction feasibility. However, cross-border regulatory collaboration poses the biggest challenge, as the circulation of stablecoins on public chains must comply with the enforcement requirements of multiple countries, making asset freezing operations complex.

Hong Kong, with its clear regulatory framework for stablecoins and the unique advantages 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 the global flow of funds. However, high compliance costs, the complexity of cross-border regulation, and the market cultivation cycle still need to be addressed. If Hong Kong can accelerate legislative innovation, improve infrastructure, and expand diversified application scenarios, it will transition from a "follower" to a "creator" in the Web3 wave, leading a new chapter in the digital transformation of global finance and crafting a magnificent blueprint for the future of the digital chain.