Hong Kong Experiences Surge in RWA Tokenization as Mainland Firms Enter Market

Hong Kong's financial landscape is transforming as Chinese institutions rapidly adopt tokenized real-world assets (RWAs). The shift follows the August 1 implementation of the Stablecoins Ordinance, which established a regulatory framework under the Hong Kong Monetary Authority. Mainland-backed fund managers and insurers are now treating tokenization as mandatory "assigned homework," with trials underway for products like tokenized money market funds and rental income streams.

Industry leaders predict blockchain-based financial products will dominate within a decade, though some executives warn against unchecked hype. Taikang Asset Management's Zhou Chenggang cautions that the sector may be experiencing premature euphoria. The regulatory clarity has nonetheless created a pipeline for sustainable growth, with demands for faster government action to capitalize on the momentum.