Hong Kong Web3 New Dimensions 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 Web3 and the global financial sector was successfully held. The event revolved around the theme "RWA Revolution - Hong Kong's Trillion-Level Assets on Chain," gathering industry experts to discuss the opportunities and challenges of bringing Real World Assets (RWA) on chain.

RWA Promotes the Digital Transformation of Finance in Hong Kong

Paolo, 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 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. is strategically positioned as "on-chain digital colonialism," reinforcing dollar hegemony through the distribution of stablecoins and U.S. Treasury bonds; Hong Kong, on the other hand, is positioned as "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-U.S. dollar clearing and settlement solutions. Paolo emphasizes that stablecoins and RWA represent the on-chain funding side and asset side respectively, with Hong Kong promoting RMB internationalization and the construction of an autonomous clearing and settlement network through RWA, occupying a unique position in global financial innovation.

Legal Compliance and Opportunities of RWA

Gilbert Ng, the Legal Director of Mulan Investment Management, pointed out that 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 the requirements of the China Securities Regulatory Commission;
3. Transaction records must meet the traditional financial "gold standard" off-chain.

Real estate RWAs face challenges due to off-chain registration requirements, but they can circumvent restrictions through the securitization of rental income; 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, as non-securities assets like spot gold have a lower compliance threshold. The Hong Kong secondary market 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.

Crypto Native's View on Hong Kong RWA

Ohmann stated that as a "veteran in the crypto space," he is paying attention to the RWA concept but is cautious about trading Hong Kong RWA tokens. He prefers to invest in familiar areas to increase his chances of success, as he has limited knowledge of RWA assets such as Hong Kong real estate and artworks, which raises concerns about investment risks. He acknowledges the advantages of RWA in reducing the investment threshold for high-value assets and enhancing liquidity through tokenization, but believes personal investments require reliable guidance.

Target User Group of RWA

RWA Group CEO Tony Fu believes that RWA's success requires buying support, and its user base is divided into two categories:

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

Tony Fu emphasized that the Hong Kong RWA market can connect crypto with traditional finance, promote the tokenization of quality assets, and attract global capital.

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

Uweb President Yu Jianing pointed out that the "Stablecoin Regulatory Framework" implemented on August 1, 2025, marks the world's first regulatory framework for fiat-backed stablecoins, positioning stablecoins as payment and 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 United States leads with the tokenization of US stocks, while the tokenization of Hong Kong stocks is difficult to achieve due to the Hong Kong Stock Exchange's monopoly. Yu Jianing believes that Hong Kong needs to accelerate innovation, exploring REIT and ABS tokenization, leveraging the advantages of "one country, two systems" to attract cross-border assets, but must remain vigilant against competitive pressure from the United States.

The Significance of Compliant Issuance of Stablecoins for RWA

Xiao Yu believes that the Hong Kong stablecoin regulations promote the development of RWA from the regulatory and compliance perspectives. On the regulatory side, issuers need to obtain licenses and establish local entities, and the reserve assets must be highly liquid and 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, assets are verifiable and traceable, meet central bank standards, and facilitate auditing and tax calculations. Xiao Yu emphasizes that 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

Big Brother holds a cautious attitude towards the RWA concept, believing that it currently has many drawbacks and that fraud cases have significantly increased. He thinks that RWA has certain significance when combined with actual assets, especially under the background of Hong Kong's "One Country, Two Systems" policy and recent compliance legislation for virtual currencies, which has attracted numerous crypto projects and international resources to Hong Kong. However, current regulation is still not transparent, and fraud issues are prominent, but this is also a period of industry dividends. He suggests that 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."

Solowin Web3 Partner Marco believes that Hong Kong is showing positive progress through its stablecoin licensing system. Hong Kong's goal is to tokenize traditional financial assets and enhance trading efficiency and smoothness through blockchain technology, especially in the primary market for issuing financial products. 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 there is hope for further internationalization of domestic assets through offshore RMB stablecoins in the future. Marco emphasizes that the RWA market must first improve the primary market issuance before the secondary market can gradually develop.

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

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 regulations reduce regulatory uncertainty, enhance market trust, and facilitate the expansion of cross-border payments, DeFi, and the RWA market, 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, though in the short term it is constrained by market size and the dominance of USD stablecoins. Some 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 ecosystem diversification become key

New regulations for stablecoins are accelerating the RWA sector, with both complementing each other to lay the foundation for Hong Kong's new global payment infrastructure. Stablecoins provide efficient settlement for RWA, shortening financing cycles, and it is predicted 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 the entry of large institutions creates a snowball effect, while stablecoins reduce compliance costs and enhance transaction feasibility. Cross-border regulatory cooperation is the biggest challenge, as the circulation of stablecoins on public chains must comply with the law enforcement requirements of multiple countries, making asset freezing operations complex. Future leading factors include differentiated profit models, first-mover advantages in licensing competition, and ecological diversification. Hong Kong needs to overcome the integration of technology and regulation, 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", is attracting large enterprises to enter the market, targeting the trillion-dollar cross-border payment and asset tokenization market, 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 is expected to transition from a "follower" to a "creator of wind" in the Web3 wave, leading a new chapter in the global financial digital transformation.