Hong Kong Web3 System Upgrade: Policy 2.0 Implementation, Stablecoins and RWAs Become the Focus, Over 40 Institutions Have Rushed Ahead

Author: Weilin, PANews

As stablecoins and traditional brokerage firms provide channels for crypto investment, related concept stocks have been ignited, while the Hong Kong government adds fuel to the heat.

On June 26, the Hong Kong SAR Government issued the "Hong Kong Digital Asset Development Policy Declaration 2.0", which elaborated on the measures proposed in the first policy declaration from October 2022, detailing deployment and implementation measures, with a greater focus on practical applications and ecosystem development, reaffirming the SAR Government's commitment to making Hong Kong a global innovation center in the field of digital assets.

The "Policy Declaration 2.0" proposes the LEAP framework, focusing on four key areas.

According to the official announcement, the "Policy Declaration 2.0" clarifies the government's vision for building a trustworthy and innovation-focused digital asset ecosystem, prioritizing risk management and investor protection while also committing to bringing substantial benefits to the real economy and financial markets. The new policy declaration proposes the "LEAP" framework, focusing on the following points:

Legal and regulatory streamlining: The government is building a unified and comprehensive regulatory framework for digital asset service providers, covering digital asset trading platforms, stablecoin issuers, digital asset trading service providers, and digital asset custody service providers.

Among them, the Securities and Futures Commission (SFC) will be the main regulatory body responsible for the licensing mechanism for future digital asset trading service providers and digital asset custody service providers. At the same time, the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority (HKMA) will lead a comprehensive review of the legislation to promote the tokenization of real-world assets and financial instruments.

Expanding the suite of tokenised products: The government will regularise the issuance of tokenised government bonds and provide incentives for the tokenisation of real-world assets (including clarifying stamp duty arrangements applicable to tokenised exchange-traded funds) to enhance liquidity and accessibility. On this basis, the government welcomes the future secondary market trading of related tokenised exchange-traded funds through licensed digital asset trading platforms or other platforms. The government will also promote the broader tokenisation of assets and financial instruments, showcasing the diverse applications of this technology across different sectors, including precious metals (such as gold), non-ferrous metals, and renewable energy (such as solar panels).

Advancing use cases and cross-sectoral collaboration: The stablecoin issuer licensing mechanism will be implemented on August 1, which will help advance the development of substantive application scenarios. At the same time, the government is also committed to strengthening the cooperation among regulatory agencies, law enforcement agencies, and technology providers to develop digital asset infrastructure.

In addition, as part of the on-ground support, Cyberport announced the launch of the "Blockchain and Digital Asset Pilot Funding Scheme," which is now open for applications. The scheme covers multiple areas, including the tokenization of real-world assets (RWA), stablecoins and payment solutions, decentralized identity, Web3.0 security, distributed artificial intelligence (AI)/machine learning (ML), as well as social innovation and digital experience. Each eligible pilot project can receive 80% funding, with a maximum funding amount of HKD 500,000. The application period for the scheme ends on August 1.

People and partnership development: The government is committed to collaborating with the industry and academia to promote talent development and position Hong Kong as an exceptional center for digital asset knowledge sharing and international cooperation, including joint research programs and global regulatory collaboration. The government will establish a sustainable talent pool by nurturing a new generation of entrepreneurs, researchers, and technical experts.

The Financial Bureau and the Securities Regulatory Commission are about to conduct a public consultation on the licensing mechanism for digital asset trading service providers and digital asset custody service providers.

Institutional upgrades, stablecoins have evolved from "tool currency" to "infrastructure currency".

Dr. Xiao Feng, Chairman and CEO of HashKey Group, provided an interpretation of the "Policy Declaration 2.0" to PANews. He stated that "Policy Declaration 2.0" is not just a simple continuation, but a systematic upgrade. It systematically promotes compliance regulation, asset tokenization, scenario expansion, and talent development around the "LEAP" strategic framework. The key changes are particularly in three aspects:

1. Stablecoins will be subject to regulation: It is explicitly stated that the stablecoin licensing system will be officially implemented on August 1, 2025, making it one of the few jurisdictions in the world to truly provide a "pass" for stablecoins.
2. RWA tokenization is regarded as a key industry: The government is not only promoting the normalization of bond issuance but also plans to include assets such as gold, green energy, and electric vehicles in the scope of tokenization;
3. Tokenized ETFs and digital asset funds enjoy tax exemptions: If future legislation is passed, tokenized ETFs will enjoy the same stamp duty exemptions and capital gains tax exemptions as traditional ETFs, which is a rewriting of the rules of the financial market.

At the same time, stablecoins are evolving from "tool-based currencies" to "infrastructure currencies". "The institutional design in Hong Kong is very clear, setting rules for stablecoin issuers regarding statutory reserve management, redemption mechanisms, and risk prudential requirements. It has transformed stablecoins from being a 'club agreement' among technologists to a currency with both statutory and technical attributes that can be accepted by banks, cross-border settlement systems, and the public sector," said Dr. Xiao Feng.

Talking about the impact of the new policy on crypto natives, he stated: The industry was originally two extremes: one side was completely on-chain digital native assets like BTC and ETH, and the other side was the completely traditional system. But now, the emergence of stablecoins and RWA has bridged the gap between the two, which is the "digital twin". Its essence is the on-chain mapping of real-world assets, which is asset-level Web3. For example, the rights to the income from green power, warehouse receipts for cars, government bonds, gold... all measurable and property-rights data can be transformed into on-chain tradable assets.

"The underlying judgment logic is that we have transitioned from the stage of 'multi-chain prosperity' to 'main chain dominance', no longer pursuing the competition of numerous chains in terms of quantity, but rather returning to the competition of infrastructure quality. Those who can support RWA and compliance mechanisms will emerge victorious. **The introduction of new policies further confirms our observation of the Web3 industry, where we will witness a massive explosion in the era of digital twins, and compliance is the ticket to entry." said Xiao Feng.

Regarding this declaration, Gan Tian, CEO of Huaxia Fund ( Hong Kong ), told PANews: "This gradual and comprehensive development strategy will effectively enhance the quality of market operations, promote business innovation and market participation, and provide clearer development guidelines for practitioners. Coupled with the 'Stablecoin Regulations' that will officially take effect on August 1, it is expected that the Hong Kong Web3 ecosystem is ushering in new development opportunities, demonstrating strong growth momentum and driving the local ecosystem towards sustainable development."

In the past three months, news regarding the landing of stablecoins and RWA projects in Hong Kong has been frequent, and the "Policy Declaration 2.0" may further boost this trend.

In March 2025, Conflux Tree Graph Chain cooperated with Ant Digital Technology to jointly participate in China's first green energy battery swap asset RWA project, promoting the application of real-world assets (RWA) in Hong Kong. On May 2, it was reported that the Hong Kong-listed company OSL Group signed a memorandum of understanding (MoU) with Ant Digital Technology to establish a strategic partnership for the tokenization of physical assets (RWA). In June, according to the Daily Economic News, Ant International and Ant Digital Technology planned to apply for a stablecoin license in Hong Kong, while Lianlian Digital was also exploring the application for a license in Hong Kong. Xiaomi's Tianxing Bank announced its collaboration on stablecoins with JD's JD Coin Chain Technology. In the same month, Longxin Group also stated on the interactive platform that the company, in cooperation with Ant Digital Technology, completed the first domestic transaction based on new energy physical assets RWA in Hong Kong last August, issuing RWA for 9,000 charging piles operated by its aggregation charging platform New Electric Road to obtain financing.

New stage of regulatory compliance, 40 institutions have upgraded their licenses.

Currently, the regulatory oversight of digital asset businesses in Hong Kong is a collaborative effort between the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA). The SFC regulates virtual asset business activities, while areas involving monetary payments, such as stablecoins and digital Hong Kong dollars, are regulated by the HKMA. The Hong Kong SFC adopts the principle of "same business, same risks, same regulation" in its regulation of virtual assets, adding conditions and technical specifications for virtual asset businesses on top of traditional financial licenses.

The licenses related to the financial market and cryptocurrency in Hong Kong mainly include the upgraded licenses 1, 4, 7, and 9. Among them, License 1: Virtual Asset Trading (Distribution) - opening accounts for clients or providing buying and selling services; License 4: Virtual Asset Investment Advisory - providing professional advice on digital assets; License 7: Automated Trading Services - operating trading platforms in conjunction with VASP licenses, forming a "dual-license" system; License 9: Virtual Asset Management - managing funds with over 10% of virtual assets.

As of June 24, 2025, the 11 officially licensed virtual asset trading platforms are as follows: OSL Digital Securities Limited, Hash Blockchain Limited, Hong Kong Virtual Asset Exchange Limited, Hong Kong Digital Asset Trading Group Limited, Cloud Account Greater Bay Area Technology ( Hong Kong ) Limited, DFX Labs Company Limited, EXIO Limited, Panthertrade ( Hong Kong ) Limited, YAX ( Hong Kong ) Limited, Bullish HK Markets Limited, Hong Kong BGE Limited.

On the evening of June 24, Guotai Haitong's Hong Kong subsidiary "Guotai Junan International" announced that it had received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license (Type 1 license) to provide virtual asset trading services and offer advice. This news quickly ignited the market, and on June 25, Guotai Junan International's stock surged nearly 200%.

According to the Hong Kong Securities and Futures Commission, there are currently a total of 40 institutions approved to provide virtual asset trading services through comprehensive accounts. In addition to the latest approved Cathay Securities International, there are Tianfeng International under Tianfeng Securities, Haifu Securities under Eastmoney, Futu Securities (Hong Kong), Interactive Brokers, China Zhongqi Securities, and Zhong An Bank, among others. Many Chinese-funded brokerages such as Huatai International and CSC International are also actively applying for upgrades to virtual asset-related trading licenses.

Currently, brokerage firms mainly provide "distribution" type trading services, rather than operating self-run exchanges. Specifically, their model is to establish an Omnibus Account ( in licensed exchanges, providing clients with trading channels for mainstream compliant coins such as BTC and ETH by connecting to trading systems. HashKey Exchange revealed on June 25 that its Omnibus account service has provided a package of services including virtual asset trading, custody, and settlement to over 30 licensed institutions in Hong Kong, covering 90% of licensed brokerages in Hong Kong. In the past six months, the cumulative trading volume of the Omnibus account service has exceeded 30 billion HKD. It is worth mentioning that some brokerage firms, such as Futu, have also obtained exchange licenses through Panthertrade and may directly use their own channels for business development in the future.

Overall, the launch of the "Policy Declaration 2.0" marks an important progress for Hong Kong in the development path of digital assets. With the regulatory framework becoming increasingly clear, tokenized products gradually taking shape, and institutions actively entering the market, Hong Kong is accelerating the construction of a robust, diverse, and sustainable digital asset ecosystem. RWA and stablecoin are likely to become key growth areas in the next stage.