China Halts Hong Kong RWA Tokenization Push Amid Digital Asset Expansion

Beijing has quietly intervened in Hong Kong's ambitious digital asset plans. The China Securities Regulatory Commission instructed at least two major brokerages to suspend real-world asset tokenization services, signaling caution as Chinese firms explore offshore crypto markets.

Hong Kong's progressive regulatory framework—including stablecoin licensing and RWA legal reviews—now faces headwinds. The MOVE comes despite projections valuing the global tokenized asset market at $29 billion today, with some estimates reaching $16 trillion by 2025.

"Tokenization bridges traditional finance and blockchain," observes an industry veteran, noting its potential to unlock $400 trillion in traditional assets. The pause highlights Beijing's risk-averse stance toward financial innovation, even as Hong Kong positions itself as Asia's crypto hub.