Hong Kong has unveiled a new digital asset strategy that puts stablecoin regulation and asset tokenization at the core of its vision to become a leading global hub for crypto and fintech.
Released on Thursday, the latest policy statement introduces the “LEAP” framework—focusing on Legal clarity, Ecosystem development, Application in the real world, and People (talent) cultivation. This builds upon the government’s initial policy announcement from October 2022.
Under the new framework, a licensing regime for stablecoin issuers will come into effect on August 1, aiming to encourage the development of practical use cases.
The Securities and Futures Commission (SFC) will handle licensing for digital asset trading and custody services, while the Financial Services and the Treasury Bureau (FSTB), in collaboration with the Hong Kong Monetary Authority, will conduct a legal review to enable the tokenization of real-world assets (RWAs).
Hong Kong Set to Introduce Regulations for Tokenized Bonds
The Hong Kong government has announced plans to formalize the issuance of tokenized government bonds and promote the development of tokenized exchange-traded funds (ETFs) by clarifying their stamp duty treatment.
According to the policy statement, the government also supports enabling secondary market trading of these tokenized ETFs on licensed digital asset (DA) trading platforms or through other approved channels.
Expanding beyond bonds and ETFs, the government intends to encourage tokenization across a range of sectors, including precious metals like gold and renewable energy assets such as solar panels—highlighting the broad applicability of the technology.
To further drive innovation, the policy outlines new initiatives, including a Cyberport funding scheme aimed at supporting high-potential blockchain and digital asset ventures.
Financial Secretary Paul Chan noted that the updated framework “showcases the practical use of tokenization” and is designed to foster a thriving digital asset ecosystem that integrates with both the real economy and everyday life.
The government also announced plans to launch public consultations soon on new licensing frameworks.
Hong Kong eyes crypto derivatives
Earlier this month, Hong Kong’s financial regulators announced plans to roll out digital asset derivatives trading for professional investors.
This move builds on a wave of recent approvals for spot crypto ETFs, futures products, and staking services—including HashKey receiving the green light to offer staking in April—as part of the city’s broader effort to establish itself as a premier hub for digital finance.
In May, the Legislative Council passed the Stablecoin Bill, laying the groundwork for a comprehensive regulatory framework that aims to solidify Hong Kong’s position as a global leader in digital assets and Web3 innovation.
