The numerous benefits of the RWA track have given a strong boost to the market economy 📈
Recent actions in Hong Kong's crypto market have attracted widespread attention, with 22 banks, 13 brokerages, and 5 custody giants entering the scene. In the first half of the year, the trading volume reached HKD 26.1 billion, a staggering increase of 233% year-on-year, far exceeding last year's total, injecting strong vitality into the market.
The entry of banks has become the 'official add-on' for retail investors. In the past, buying cryptocurrencies faced challenges such as withdrawal security and private key management. Now, Hong Kong banks have integrated digital assets into their apps, allowing users to buy Bitcoin and tokenized stocks with just a couple of taps on their phones. Bank custody has also resolved issues related to asset security and private key memory. For example, Standard Chartered Bank's launch of 'tokenized gold' allows retail investors to purchase it for HKD 500 and even transfer it to DeFi platforms for mining and earning interest. The funding, compliance channels, risk control, and user trust brought by banks are addressing the shortcomings of the crypto space.
On August 1, Hong Kong's new stablecoin regulations were implemented, prompting companies like JD, Ant Group, and Standard Chartered to compete for licenses. After the launch of the HKD stablecoin, it can achieve instant settlement for Greater Bay Area trade with zero fees and serve as an investment entry point for subscribing to Hong Kong's tokenized bonds, providing returns far exceeding bank deposits. Some cross-border traders are using it to replace USDT for settlements, avoiding frozen cards and price volatility risks, and can earn interest by depositing idle stablecoins in decentralized lending platforms. It is expected that by the end of 2025, its circulation may surpass USDT's share in Asia.
In the fourth quarter, the Hong Kong government will issue HKD 5 billion in tokenized government bonds, and HSBC and Morgan Stanley also plan to put corporate bonds on-chain. The splitting of tokenized bonds lowers the investment threshold, allowing retail investors to participate; it enables T+0 trading to meet high-frequency trading demands; and smart contracts can ensure automatic interest payments, enhancing credit. This is not only the on-chain rebirth of traditional finance but will also attract trillions of dollars from the bond market, driving up assets like Bitcoin.
Hong Kong is breaking through the trust barriers in the crypto market with the compliance advantages of traditional finance. The combined effects of banks entering the market, the rise of stablecoins, and the explosion of tokenized bonds make the crypto market in 2025 look more like an opportunity battle where 'the early bird catches the worm.'
