- Hong Kong unveils Digital Assets Policy 2.0 to boost tokenization.
- LEAP framework outlines licensing, regulation, and asset tokenization strategies.
- Stablecoin licensing to begin August 2025 with strong industry interest.
The Hong Kong Government launched Digital Assets Policy 2.0 on June 26, marking a major step forward in its mission to become a global leader in digital finance. The new policy builds upon the initial statement released in October 2022. It further supports Hong Kong in becoming more innovative, trustworthy, and responsible in terms of providing its services in the digital asset industry.
Hong Kong to Expand Tokenized Products, Including Bonds and ETFs
The new policy will propose a detailed strategy in the framework of the LEAP that refers to the Legal and regulatory streamlining, Expanding tokenized products, Advancing use cases, and People and partnership development. This solution looks to place Hong Kong as a reputable place of blockchain innovation, but with heavy controls and investor security.
First, the streamlining of laws and regulations will ease the regulations of the DA service providers. It involves establishing the situation of licensing on exchanges, stablecoin issuers, dealers, and custodians. The issuance of these licenses will be headed by the Securities and Futures Commission (SFC), whereas the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will also review the laws to facilitate the tokenized assets, including digital bonds. The package of this legal reform will facilitate the modernization of such systems as settlement and registration according to tokenization.
Secondly, the policy seeks to increase the range of tokenized products. Hong Kong will now formalize tokenized government bonds as well as provide incentives to tokenize real-world assets such as ETFs. The government will also consider tokenizing assets such as gold, solar panels, and non-ferrous metals. This will introduce new dimensions in the investment market and enhance market liquidity through secondary market trading of tokenized products on licensed digital asset exchange platforms.
Hong Kong to Launch Stablecoin Licensing Regime by August 2025
The third policy section, which is to drive real-world applications and inter-sector collaboration, is concerned with applications. Stablecoin licensing regime will start officially on August 1, 2025. Currently, many companies have already requested the application. This will enable secure stablecoin payment and regulated use of stablecoins in financial services. Cyberport, the tech hub of Hong Kong, will introduce a funding program to assist blockchain and DA products in development. This effort is geared to supporting applications with a high impact, which can be used as examples within the industry to inspire future innovations.
Furthermore, people and partnership development are a major focus of the policy. The Government aims to build strong connections between academia, industry, and regulators. It actively promotes education to train the next generation of blockchain specialists. The vision of Hong Kong is to establish itself as a digital asset research and international collaboration hub in both the sustainable talent pipeline and in attracting global collaboration.
Financial Secretary Paul Chan pointed out that digital resources have the potential to reduce transaction costs as well as facilitate financial inclusion. He remarked that tokenization is practical and will assist Hong Kong in connecting finance comprehensively to the social and economic development. He further stated that the city strategy combines tough regulation and encouraging market innovation.
Secretary Christopher Hui also added that Hong Kong is poised to mediate between the past of traditional finance and the new cosmopolitan of the digital future. Officials named Policy Statement 2.0 a clear path to building a stable, pioneering, and inclusive digital asset ecosystem.
To conclude, Digital Assets Policy 2.0 contains a powerful vision of a regulated but progressive crypto market. Hong Kong is already on a strong path to the digital finance era with its strategic structure and international orientation.
