Hong Kong Unveils Digital Asset Policy 2.0 Boosting Stablecoins and RWA Tokenization

Hong Kong has unveiled its digital asset policy 2.0, a comprehensive framework aimed at boosting the use of stablecoins, real-world asset (RWA) tokenization, and enhancing regulatory oversight. This initiative is designed to strengthen market accessibility, enhance liquidity, and accelerate the global adoption of tokenized assets. The policy introduces a stringent licensing regime for stablecoin issuers, positioning the region as a regulated hub for digital assets.

The new policy statement, known as 'Policy Statement 2.0 on Development of Digital Assets in Hong Kong,' includes the 'LEAP' framework. This framework is intended to diversify the application of digital assets, fostering innovation and growth in the sector. The LEAP framework will support the integration of stablecoins into the financial ecosystem, providing a stable medium of exchange and store of value. This move is expected to attract more investors and institutions to the region, further solidifying its status as a leading financial center.

In addition to stablecoins, the policy also focuses on RWA tokenization. This process involves converting real-world assets, such as real estate and commodities, into digital tokens on a blockchain. By bringing these assets on-chain, the DeFi ecosystem is enriched, offering investors new options and enabling more diversified strategies. Users can gain exposure to a wider range of assets, enhancing the overall liquidity and efficiency of the market.

The policy also emphasizes the importance of regulation in the digital asset space. The new licensing regime for stablecoin issuers is part of a broader effort to ensure that the market operates in a transparent and secure manner. This regulatory framework is designed to protect investors and maintain the integrity of the financial system, while also fostering innovation and growth in the digital asset sector.

To support this, the government will foster collaboration between public agencies and industry players to help build the underlying infrastructure for digital assets. The government also aims to grow the tokenized asset market. Plans include making tokenized government bonds more mainstream, clarifying tax treatment for tokenized ETFs, and enabling their trading on licensed platforms. The updated policy will also extend tokenization to sectors such as gold, precious metals, and renewable energy, demonstrating how blockchain can enhance accessibility and liquidity in traditional markets.

Another core focus is encouraging adoption and industry collaboration. Regulators will move forward with the new stablecoin licensing regime, set to launch on August 1. Additionally, new use cases will be tested for stablecoin use in everyday situations, such as payments and financial services. The government will also foster collaboration between public agencies and industry players to help build the underlying infrastructure for digital assets.

On the talent front, the policy outlines efforts to position Hong Kong as a digital asset research and education hub. Authorities plan to partner with academia and industry on joint programs, global collaboration, and long-term workforce development in the sector. Emphasizing the importance of the policy upgrade, Hong Kong Financial Secretary Paul Chan described it as a practical blueprint for boosting the local digital asset scene. “The Policy Statement 2.0 sets out our vision for DA development and showcases the practical use of tokenisation through application, with a view to boosting the diversification of use cases, he said, adding that “it will bring benefits to both the economy and society while consolidating Hong Kong’s leading position as an international financial centre,” he said.

The implementation of this policy is expected to have a significant impact on the global digital asset market. By providing a regulated environment for stablecoins and RWA tokenization, Hong Kong is positioning itself as a leader in the digital asset space. This move is likely to attract more investors and institutions to the region, further solidifying its status as a leading financial center. The policy is also expected to drive innovation and growth in the digital asset sector, as companies and individuals seek to take advantage of the new opportunities created by the policy.