Hong Kong Aims to Lead Global Crypto Hub with 285% Fund Inflow Surge

Hong Kong is intensifying its efforts to become a global leader in crypto and fintech, aiming to establish itself as the premier hub for cross-border digital asset management within the next two to three years. This ambitious goal is supported by a significant increase in fund registrations and a regulatory push to enhance the safety and accessibility of crypto investing.

Hong Kong's financial secretary, Paul Chan, recently highlighted the region's progress at the Wealth Management Expo 2025. He noted that by March 2025, the number of registered funds in Hong Kong had reached 976, with an annual net inflow exceeding $44 billion, marking a 285% increase. Additionally, the number of family offices in Hong Kong is expected to rise from 2,700 to 3,000, with the funds managed by the region's treasury management industry surpassing $4 trillion.

Chan emphasized that Hong Kong is poised to become the world’s top cross-border asset management center within the next two to three years. The market has shown a keen interest in digital assets, particularly the issuance of stablecoins. Hong Kong has recently completed the legislation of stablecoins, which will come into effect on August 1, making it one of the first jurisdictions globally to establish a statutory regulatory framework for stablecoins.

A key component of Hong Kong’s strategy is the development of infrastructure to support its goals. The Hong Kong Monetary Authority (HKMA) is leading Project Ensemble, a tokenization sandbox aimed at modernizing interbank settlements and testing digital representations of assets. This initiative includes using tokenized vehicles for fund distribution, enabling cross-border investments with near-instant finality, and reducing costs for institutional players.

On the regulatory front, Hong Kong has established dual licensing regimes for virtual asset trading platforms (VATPs), covering both retail-facing crypto exchanges and platforms trading tokenized securities. Ten digital asset platform licenses have been granted, with eight more under review. This includes major players from Asia and emerging platforms looking to scale globally. In April 2024, Hong Kong became one of the first jurisdictions to approve spot Bitcoin and Ethereum ETFs. The Stablecoin Ordinance, set to take full effect in August 2025, requires platforms issuing fiat-backed stablecoins to meet reserve, audit, and redemption standards, further de-risking the digital asset ecosystem for mainstream finance.

To attract more investment, Hong Kong is exploring crypto tax exemptions for hedge funds, family offices, and private equity managers. This move could be a significant draw for fund domiciles and crypto-focused capital managers who are wary of stricter regimes in other regions. While Singapore, Dubai, and the UK are also vying for the digital asset crown, Hong Kong is differentiating itself by building deep infrastructure for central bank money integration and regulated stablecoins.

Chan concluded his speech by emphasizing Hong Kong's status as a free and open international metropolis with extensive connections and opportunities. He signaled that the region is open for business and investors, ready to adapt to big trends and continue reforming and innovating to find new markets and opportunities. The city's proximity to mainland China adds another layer of intrigue, as Hong Kong is being used as a gateway for Chinese capital to interact with global digital finance within a tightly regulated sandbox.