Hong Kong Launches LEAP Framework to Boost Digital Asset Sector

Hong Kong has unveiled an updated digital asset strategy, known as the LEAP framework, which aims to accelerate the region's fintech ambitions by focusing on stablecoin licensing and the tokenization of real-world assets. The framework is designed to provide legal clarity, expand the ecosystem, and foster talent development within the digital asset sector.

The LEAP framework is built on four key pillars: legal and regulatory streamlining, expanding tokenized assets, advancing use cases, and promoting people and partnerships. The Securities and Futures Commission will oversee digital asset trading and custody, while the Financial Services and Treasury Bureau and the Hong Kong Monetary Authority will update laws to support tokenized bonds and financial instruments.

Tokenized government bonds will become a regular feature, and the government plans to encourage the tokenization of ETFs, gold, metals, and green assets. Clear rules will be established to enhance secondary market trading, and a stablecoin issuer licensing regime will launch on August 1, following the recent approval of the Stablecoins Ordinance.

Cyberport has introduced a pilot funding scheme offering up to HK$500,000 per project to support tokenization, stablecoins, and blockchain innovations. The city also plans to build academic and industry partnerships to nurture talent and position Hong Kong as a hub for digital asset expertise in the region.

Financial Secretary Paul Chan emphasized that Hong Kong’s goal is to integrate digital assets into everyday life through prudent, forward-looking regulation. The upcoming stablecoin regime will require issuers to meet high standards for reserves, redemption rights, security, and compliance, ensuring investor protection.

By building a robust ecosystem—from legal structure and real-world tokenized products to research and funding—Hong Kong is making a strategic move to become a global leader in digital finance. The LEAP framework and stablecoin regulation place the city ahead of regional competitors in the race for crypto innovation.