Hong Kong Launches Stablecoin Licensing Framework, Boosts Tokenized Assets

Hong Kong has unveiled a comprehensive framework for stablecoin licensing and tokenized bond plans, marking a significant step in its digital asset policy. The new framework, known as LEAP, focuses on legal clarity, ecosystem expansion, real-world applications, and talent development. Starting August 1, the government will implement a licensing regime for stablecoin issuers, while also launching plans to regularize tokenized government bonds and promote tokenized ETFs through clarified stamp duty treatment.

The Securities and Futures Commission will oversee the licensing process for digital asset dealing and custody providers. The Financial Services and Treasury Bureau and the Hong Kong Monetary Authority will lead a legal review to support the tokenization of real-world assets. Financial Secretary Paul Chan emphasized that the framework aims to showcase practical tokenization use and build a flourishing digital asset ecosystem that integrates the real economy with social life.

Hong Kong's move aligns with global regulatory developments transforming the stablecoin landscape. The global stablecoin market cap exceeded $200 billion as of early 2025, prompting comprehensive regulatory frameworks across major jurisdictions. The EU's MiCA regulation became fully effective, while the US Senate passed stablecoin legislation requiring tokens to be backed by liquid assets with monthly reserve disclosures.

Hong Kong's tokenization push capitalizes on the explosive growth of real-world assets. Tokenized real-world assets surpassed $15.2 billion by the end of 2024, excluding stablecoins. The practice gains institutional adoption for real estate, commodities, and carbon credits. Regulatory clarity, interoperability solutions, and fractional ownership capabilities drive mainstream acceptance. The government plans to incentivize tokenization across metals and renewable energy assets, demonstrating technology versatility for precious metals and solar panels. Public consultations on new licensing regimes will launch soon, building on May's Legislative Council passage of the Stablecoin Bill.

Asia is emerging as a leading crypto regulatory hub. Hong Kong's framework positions the region as a global leader in crypto regulation. Singapore granted 30 companies Major Payment Institution licenses for digital payment tokens, while Hong Kong issued 10 Virtual Asset Trading Platform licenses. Vietnam requests urgent finalization of virtual asset pilot regulations before March 2025, and Thailand approved USDT for domestic trading with updated regulations effective March 16.

Crystal Intelligence analysis shows Asian financial centers like Hong Kong and Singapore lead with improved crypto regulations promoting growth while reducing risks. Both implement crypto exchange licensing regimes and stablecoin frameworks ensuring consumer protection without limiting innovation. The strategic positioning creates advantages for institutional participation and cross-border transactions. Hong Kong's free-trade agreements with ASEAN nations provide gateway access to high-growth markets, particularly Vietnam's digital economy with projected 30-40% crypto adoption rates in 2025. This regulatory leadership could help Asia surpass the US and Europe as the global cryptocurrency hub.

Earlier this month, Hong Kong authorities announced preparations for digital asset derivatives trading for professional investors, following approvals for spot crypto ETFs, futures products, and staking services. The city previously approved HashKey for crypto staking services in April, reinforcing its position as a leading digital finance hub competing with Singapore's comprehensive regulatory approach.