Article reprinted from: Nancy
Author: Nancy, PANews
In the current global wave of asset tokenization, Hong Kong is becoming a key testing ground for on-chain asset layout. Recently, the on-chain layout is also witnessing an accelerated evolution: on one hand, the Hong Kong government has launched multiple measures to promote tokenization experiments; on the other hand, several internet and traditional financial enterprises such as JD Technology, Futu Securities, Ant Group, and Guotai Junan are actively advancing RWA layouts.
According to PANews, many domestic enterprises holding physical assets are also responding, seeking to put their assets on the chain for tokenized financing. The most common compliant solution is to verify domestic assets on a consortium chain first, then establish a holding entity in Hong Kong for domestic assets, and proceed with token issuance financing. These enterprises span agriculture, new energy, and real estate, and the essence of exploring RWA (real asset tokenization) is still to secure financing. However, the RWA industry in Hong Kong is still navigating through uncertainties.
Hong Kong's RWA is speeding up, with multiple institutions accelerating their on-chain layouts.
The on-chain transformation of real assets is becoming a key pivot for the deep integration of TradeFi and crypto finance, and a financial revolution of 'mutual advancement' is accelerating in Hong Kong. In recent months, enterprises such as JD Technology, Ant Group, Guotai Junan International, China Carbon Neutrality, and HashKey Chain are deeply involved in innovations and implementations in the RWA field through stablecoin issuance, traditional asset tokenization, and RWA infrastructure construction.
JD Technology: Issuing stablecoins in Hong Kong, advancing RWA layout
According to reports from Zero One Think Tank, JD Technology Group recently posted multiple job openings related to RWA on BOSS Zhipin, positioning it as 'the company's strategic layout in the field of new energy and blockchain'. The job openings include positions for Director of Asset Management System Products and Director of Solutions, primarily responsible for the design of the asset management system for new energy assets RWA, asset acquisition, and industrialization. Notably, JD has explicitly stated that product design must achieve seamless integration with JD stablecoins and digital renminbi. Additionally, JD Technology Group is also recruiting for a position titled 'Overseas Financial Business Development', focusing on promoting the implementation of stablecoin operations.
In July last year, JD announced its layout in the stablecoin sector, planning to issue a stablecoin JD-HKD pegged to the Hong Kong dollar at a 1:1 ratio. This stablecoin's reserves consist of highly liquid and trustworthy assets, which will be securely stored in independent accounts held by licensed financial institutions, and the integrity of the reserves will be verified through regular disclosures and audit reports. Currently, the project has officially entered the HKMA's stablecoin sandbox pilot.
It is worth mentioning that JD's subsidiary, JD Coinlink (Hong Kong) Co., Ltd., has also reached a cooperation agreement with Tianxing Bank, which was jointly established by Xiaomi Group and Shangcheng Group. As a licensed virtual bank, Tianxing Bank will provide financial compliance support for JD to explore cross-border payment solutions based on stablecoins under the framework of the HKMA's stablecoin sandbox. The bank is 50.30% controlled by Xiaomi Group and holds 44.11% by Futu Group.
To deepen the stablecoin strategy, JD also announced in March this year the recruitment of stablecoin policy researchers, requiring strong financial backgrounds and policy research capabilities, focusing on domestic and international stablecoin policy regulations, and maintaining communication with regulatory agencies.
Regarding the issuance of stablecoins, Dr. Shen Jianguang, Vice President of JD Group, pointed out in a recent speech that stablecoins belong to decentralized commercial issuance at the corporate level, with minimal fluctuations influenced by macroeconomic factors. The issuance of stablecoins by JD aims to further enhance JD's global supply chain and cross-border payment capabilities. Once approved for issuance in Hong Kong, stablecoins are expected to be implemented in multiple countries and regions, but they must still comply with regulatory rules of different countries, such as the EU's MiCA, which requires local company establishment and licensing applications, while Japan may accept Hong Kong-issued coins. JD will actively promote global compliance layouts and build stablecoin infrastructure.
Ant Group: Advancing technology and scenarios in tandem, speeding up RWA layout
Starting in 2024, Ant Group began to accelerate its layout in the RWA field. In May, as one of the first participants from the private sector, Ant Group joined the HKMA's Ensemble project sandbox, participating in technology testing for tokenized deposits, exploring asset tokenization scenarios, and formulating industry standards, and subsequently recruited RWA architects in Hong Kong. Following this, Ant Group frequently made moves in RWA applications, such as advancing RWA tokenization in the ESG (environmental, social, and governance) field in cooperation with Sui, successfully completing the country's first RWA case involving 200 million yuan based on photovoltaic physical assets in collaboration with green energy service provider GCL-Poly, and providing technical support for the world's first RWA project involving asset swapping for Xunying Group.
While continuously expanding application scenarios, Ant Group is also deepening its technological foundation. For example, last October, Ant Group publicly launched its 'Two Chains, One Bridge' platform designed for RWA business, aiming to help more domestic new energy assets go to Hong Kong for RWA, realizing technological empowerment of physical assets. In April of this year, Ant Group's newly open-sourced next-generation blockchain virtual machine DTVM integrated the SmartCogent framework for large language model development, while being fully compatible with the Ethereum ecosystem, eliminating language barriers for RWA scenario developers across platforms.
Earlier this month, Ant Group launched the Jovay Layer 2 blockchain aimed at overseas markets, which is a high-performance, trustworthy blockchain platform specifically designed for RWA transactions, supporting 100,000 TPS and a 100-millisecond response time. Jovay uses a dual proof system of TEE and zk, and can seamlessly connect with Layer 1 blockchains such as Ethereum, aiding the conversion of global new energy assets into tradable digital assets.
Guotai Junan International: Officially initiating the layout of tokenized securities business
On May 11, Guotai Junan International stated that in accordance with the (Circular on Intermediaries Engaging in Tokenized Securities Related Activities) issued by the Hong Kong Securities and Futures Commission, relevant business plans for tokenized securities distribution and digital bond issuance have been submitted, and both have been confirmed by regulatory agencies to have no further issues.
The institution stated that Guotai Junan International submitted a wealth management business plan to the Hong Kong Securities and Futures Commission (SFC) on January 21, 2025, planning to distribute tokenized securities to clients or provide advice on tokenized securities based on its existing securities trading. The types of tokenized securities planned include: structured products linked to multiple underlying assets (such as structured notes, over-the-counter derivatives), SFC-recognized funds and non-recognized funds, as well as bonds. The Hong Kong SFC sent a confirmation email on May 7, 2025, indicating that there were no further issues with the plan. At the same time, Guotai Junan International submitted a digital bond issuance business plan to the Hong Kong SFC based on its existing bond issuance business, indicating its capability to act as an overall coordinator, syndicate capital market intermediary, or settlement agent in future digital bond issuance projects. The Hong Kong SFC confirmed on April 2, 2025, that there were no further issues with the plan.
China's Carbon Neutrality: Plans to Promote Green Asset Tokenization
Earlier this month, the Hong Kong-listed company China Carbon Neutrality announced that it has signed a strategic cooperation framework agreement with Gaol Street Holdings Limited (Gaol Street Group), with both parties engaging in equity cooperation, business collaboration, and various fields of cooperation. According to the agreement, China Carbon Neutrality will consider a strategic investment in the securities-type token issuance platform CSpro under Gaol Street Group, and jointly explore the development of innovative financial tools in the green asset field under the legal and regulatory framework of Hong Kong, promoting the landing of green asset tokenization projects including carbon assets.
HashKey Chain: Has reached RWA on-chain cooperation with over 200 institutions.
In March this year, HashKey Chain announced that the tokenized US dollar money market fund CPIC Estable MMF, initiated and managed by China Pacific Insurance Investment Management (Hong Kong), has been successfully deployed to HashKey Chain, with a subscription scale of 100 million US dollars on the first day of operation. Through deployment on HashKey Chain, CPIC Estable MMF can provide institutional investors with digital asset allocation tools. In the same month, HashKey Group and Bosera Asset Management (International) Co., Ltd. announced that the Hong Kong dollar and US dollar money market ETF tokenization plan jointly launched has been approved by the Hong Kong Securities and Futures Commission (SFC), marking the world's first tokenized money market ETF. It is also one of the important projects in the HKMA's Ensemble sandbox project exploring innovative tokenization of RWA.
According to Kay, CEO of HashKey Eco Labs, as of now, the HashKey Chain team has engaged in deep connections with over 200 institutions, involving traditional financial institutions, asset management companies, technology enterprises, and Web3 native projects, reaching RWA on-chain cooperation intentions. They are exploring the tokenization of traditional financial products such as money market funds (MMF), ETFs, and bonds, aiming to achieve 7×24 hour global market access, real-time trading, and capital efficiency improvement through blockchain technology.
Wall Street accelerates its shift to the blockchain; how can Hong Kong seize the new heights of RWA?
Currently, the main driving force behind global tokenization innovation still comes from the United States. Traditional financial institutions on Wall Street, represented by BlackRock, Goldman Sachs, and JPMorgan Chase, are accelerating the flow of traditional funds onto the chain through Bitcoin spot ETF channels and traditional asset tokenization.
Meanwhile, the United States is proactively providing policy support, including SEC Chairman Paul Atkins, who clearly stated at the latest cryptocurrency roundtable that the migration of securities from off-chain systems to on-chain systems is similar to the evolution of audio recordings from vinyl records to cassette tapes to digital software decades ago. This change is expected to completely transform the securities market through new methods of issuance, trading, holding, and usage. The SEC must keep pace with innovation and assess whether the existing regulatory framework needs to be adjusted to accommodate the development of on-chain securities and other crypto assets. At the same time, regulatory bodies should establish a reasonable regulatory framework for the crypto asset market, formulate clear rules to regulate issuance, custody, and trading, and continue to combat illegal activities.
In contrast, Hong Kong enterprises are relatively cautious in the development of RWA tokenization. However, it is well known that Hong Kong itself possesses rich financial resources, along with its financial infrastructure, mature capital markets, and efficient regulatory system, making Hong Kong one of the global financial centers. Tokenization, as an innovative financial tool, once RWA is further promoted on a larger scale in Hong Kong, will demonstrate tremendous growth potential in traditional finance, thereby pushing for further deepening and globalization of Hong Kong's financial market.
However, Hong Kong institutions hold a conservative attitude towards RWA tokenization, mainly due to the strict compliance requirements. The Hong Kong financial regulatory system emphasizes stability and compliance, ensuring that financial innovation does not compromise market stability and transparency. Therefore, how to achieve innovation within the legal framework and regulatory policies of Hong Kong is an important challenge faced by local institutions. As mentioned at the beginning of the article, some compliant paths have already been explored in practice. Beyond compliance, the industry's attention to regulatory attitudes is due to the fact that policy trends directly influence the flow of funds. Currently, RWA assets are poised for action, and the on-site funding situation is what everyone is more concerned about.
However, Hong Kong is actually in a proactive stance regarding tokenization policies. For example, the Ensemble project launched by the Hong Kong Monetary Authority (HKMA) aims to explore the feasibility of tokenized assets in practical application scenarios through sandbox testing, which is significant for promoting market understanding and application. Additionally, Hong Kong is exploring a Hong Kong dollar stablecoin and striving to establish a regulatory framework for stablecoins, including a (stablecoin regulatory draft) scheduled to resume second reading debates at the Legislative Council meeting on May 21. If the draft is passed, the Monetary Authority will accelerate the approval process for stablecoin-related licenses, providing a clearer regulatory environment for the market. Furthermore, Hong Kong government officials also hold an optimistic attitude towards the prospects of tokenization. For example, statements from Xu Zhengyu, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government, further indicate that Hong Kong not only hopes to promote the tokenization of assets such as gold but is also committed to integrating the real economy through digital finance.
Hong Kong also shows support for blockchain technology. For example, according to reports from ThreeDAO, Xiao Feng, the founder of Wanxiang Blockchain, suggested in a private conversation with Ethereum founder Vitalik that the Ethereum Foundation establish an office in Hong Kong. Xiao pointed out that blockchain developers are primarily concentrated in the English-speaking and Chinese-speaking worlds, and losing the Chinese market would mean losing an important global developer resource. China's technical departments, government agencies, and developer communities hold a respectful attitude toward Ethereum technology, suggesting that the foundation should not distance itself from the Chinese market.
Now, with the participation of several leading enterprises mentioned above, more Hong Kong enterprises that are in a wait-and-see state may gain confidence, providing them with motivation for reference and advancement.
In summary, as more and more global institutions accelerate the promotion of financial asset tokenization, the development space for RWA is being further opened up, presenting an important policy opportunity and development window for Hong Kong. Therefore, in the face of increasingly clear policy directions and continuously maturing technological paths, Hong Kong should appropriately release innovative experimental space on the basis of ensuring financial stability and compliance, encouraging more traditional institutions to move from observation to practice, guiding more traditional financial funds into the market, and accelerating the localized development and global integration of the RWA ecosystem.
