Hong Kong to Focus on Tokenization Moving Forward — What’s Happening?
Hong Kong is doubling down on tokenization and stablecoins as part of its push to become a global crypto hub.
Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, recently noted that tokenization is one of the “defining trends” that could reshape traditional finance in the region.
The government has already granted licenses to virtual asset trading platforms and allowing companies to issue tokenized investment products. Now, it’s taking further steps to integrate tokenization into its financial system.
This focus on bringing real-world assets (RWAs) onto the blockchain aligns with Hong Kong’s broader goal of becoming a leading crypto-friendly jurisdiction. But what does this really mean for investors, businesses, and the economy?
Tokenization means converting (literally anything) into a digital token on a blockchain. It can apply to real-world assets like stocks, real estate, bonds, or even artwork, making them easier to trade and transfer. Each token represents ownership, rights, or access to the asset, ensuring transparency and security through blockchain technology. By tokenizing assets, investors can buy and sell fractions of high-value items, increasing accessibility and liquidity. This process also eliminates intermediaries, reducing costs and making financial markets more efficient.
Hong Kong’s Push for Tokenization
Tokenization is the process of converting real-world assets like stocks, bonds, or real estate into digital tokens that can be traded on blockchain networks. This makes transactions faster, more transparent, and more accessible to a global market.
Hong Kong has already taken major steps in this direction.
The Hong Kong Securities and Futures Commission (SFC) has approved multiple tokenized investment products, making it easier for companies to issue on-chain financial assets.
In February 2025, China Asset Management’s Hong Kong branch received approval to launch a tokenized money market fund, which will be available to retail investors. This marks one of the first regulated tokenized funds in Asia.
In August 2024, the Hong Kong Monetary Authority (HKMA) launched “Project Ensemble Sandbox”, a test environment for tokenized money in interbank settlements.
Why Tokenization Matters
Traditionally, investing in assets like real estate or corporate bonds requires large amounts of capital and long holding periods. With tokenization, investors can buy and sell fractional ownership of these assets instantly, making markets more liquid.
Today, stock and bond trades take days to clear because of complex intermediaries. Tokenized assets settle almost instantly on the blockchain, cutting costs and eliminating inefficiencies.
In the current system, many high-value assets are only available to wealthy individuals and institutions. Tokenization allows smaller investors to participate, expanding investment opportunities.
Blockchains provide an immutable ledger, ensuring that ownership records and transaction histories are tamper-proof.
Stablecoins: Hong Kong’s Next Focus
Alongside tokenization, Hong Kong is also prioritizing stablecoins, which are cryptocurrencies backed by fiat currency or other assets.
In December 2024, Christopher Hui introduced a stablecoin bill that would require issuers to hold reserves equal to the value of circulating stablecoins. This ensures that stablecoins are properly backed and reduces risks for users.
The bill also gives the Hong Kong Monetary Authority (HKMA) the power to license stablecoin issuers, creating a regulated environment similar to what the U.S. is working toward.
But why does this matter?
Stablecoins simplify cross-border transactions, making global trade faster and cheaper. They provide a digital alternative to traditional banking, which is useful in regions with limited financial services. A Hong Kong-regulated stablecoin could become a powerful tool for international business and investment.
Political Pressure to Move Faster
Not everyone believes Hong Kong is moving fast enough. Hong Kong legislator Johnny Ng recently called for the government to accelerate its crypto initiatives to keep up with other global markets.
Ng’s concerns stem from a recent speech by U.S. crypto czar David Sacks, who outlined the pro-crypto stance of the Trump administration. Sacks emphasized that stablecoins could strengthen U.S. dollar dominance and that a strategic Bitcoin reserve is a top priority.
Ng believes Hong Kong risks falling behind the U.S. and other pro-crypto regions if it doesn’t act quickly.
He has proposed speeding up research into a strategic Bitcoin reserve for Hong Kong, and relaxing regulations on virtual asset transactions to encourage more activity.
Also, allowing more companies to issue stablecoins to keep up with international competition and create a dedicated digital asset department to oversee AI and blockchain projects.
What This Means for Hong Kong’s Future
Hong Kong’s focus on tokenization and stablecoins is a clear signal that it wants to be at the forefront of blockchain innovation. The steps taken so far — licensing tokenized investment products, launching a sandbox for tokenized money, and regulating stablecoins — are major milestones.
The success of tokenization depends on regulatory clarity, institutional adoption, and market demand. With financial giants like BlackRock and HSBC already embracing tokenization, it’s clear that this trend is here to stay.
TokenFi’s RWA Tokenization Module
While institutions are embracing tokenization at a large scale, TokenFi is building a platform to make this process easy for everyone — not just financial giants like Apollo.
TokenFi’s RWA Tokenization Module aims to simplify the entire tokenization process, enabling anyone to convert real-world assets into digital tokens in just a few clicks.
TokenFi focuses on accessibility, making it possible for businesses, startups, and retail investors to participate in tokenization without needing technical expertise.
