The recent approval of spot Bitcoin and Ethereum ETFs in Hong Kong marks a pivotal moment for the region's digital asset market. This development has reignited global interest in the "Hong Kong concept"—a theme encompassing projects and companies aligned with the city's push to become a leading hub for virtual asset innovation.
With the first batch of Asia-listed crypto ETFs set to debut, investors are looking beyond these products to identify other promising opportunities tied to Hong Kong's progressive regulatory framework. This article explores several key projects and tokens that embody this trend, highlighting their unique value propositions and potential within this evolving landscape.
Understanding the "Hong Kong Concept"
The "Hong Kong concept" emerged in early 2023 when Hong Kong announced its intention to implement a licensing regime for virtual asset services. This move signaled a commitment to fostering a compliant and innovative crypto ecosystem.
Projects associated with this theme typically have significant operations, teams, or development focus based in Hong Kong. Their activities often align with the city's strategic directions, such as asset tokenization, regulatory compliance, and the integration of traditional and decentralized finance. Sectors covered include CeFi, DeFi, gaming, metaverse, and core blockchain infrastructure.
The approval of spot crypto ETFs is the latest in a series of developments strengthening this concept, attracting both institutional interest and retail investment into the ecosystem.
Notable Projects and Tokens to Monitor
ACH (Alchemy Pay)
Alchemy Pay is a pioneering fiat-crypto payment gateway established in 2018. Its team brings extensive experience from the payments, telecommunications, and tech industries. A key part of its 2024 roadmap is the planned launch of a Web3 bank in Hong Kong. This initiative aims to simplify the process for users to convert between fiat currency and cryptocurrencies and to enable traditional Web2 institutions to enter the crypto investment space.
The project has been actively expanding its regulatory approvals, having secured three licenses in 2023 and aiming for over 20 in the coming year. It has already obtained a U.S. Money Transmitter License (MTL). Furthermore, Alchemy Pay is enhancing its crypto card functionality, improving compatibility with mainstream physical cards and digital wallets like Apple Pay, Google Pay, and Alipay HK.
MDT (Measurable Data Token)
Measurable Data Token operates a decentralized data exchange economy from its headquarters in Hong Kong. The platform enables secure and anonymous transactions between data providers and purchasers using blockchain technology. Its ecosystem includes products like MailTime AI and Measurable AI.
MDT has a total supply of 1 billion tokens, with approximately 606 million in circulation. It represents a play on the growing demand for secure, user-controlled data marketplaces, a sector gaining increased attention in regulated environments.
KEY (SelfKey)
SelfKey is a identity management platform built by a Hong Kong-based team. It empowers individuals and companies to take ownership of their digital identities, providing greater control over personal data. The SelfKey wallet allows users to manage their digital identity, cryptocurrency portfolios, and access hundreds of financial, immigration, and crypto-related services seamlessly.
The platform simplifies Know Your Customer (KYC) processes through a decentralized approach, ensuring transactions between relying parties, verifiers, and identity owners are both secure and private. This focus on compliant identity solutions positions it well within Hong Kong's regulated framework.
VET (VeChain)
VeChain is a Layer 1 blockchain specializing in supply chain optimization and enterprise solutions. Founded by Sunny Lu, former CIO of Louis Vuitton China, the project has deep roots and strong partnerships in Greater China, including with state-owned enterprises like China Tobacco and major corporations like Haier.
The VeChainThor blockchain uses two tokens: VET, which carries value across the network, and VTHO, which is used to power smart contract transactions. The platform integrates with Internet of Things (IoT) devices to provide authorized stakeholders with transparent and verifiable data on products throughout the supply chain. Its focus on real-world enterprise applications has led to a relatively stable performance compared to more speculative assets.
PHB (Phoenix)
Phoenix is building a blockchain infrastructure platform focused on decentralized AI, computational scalability, and data-driven networks. Its products include AlphaNet, an AI platform for crypto markets, and NYBL, an AI-generated content metaverse project.
The project's AI compute layer is a Web3-based infrastructure designed to scale AI computation tasks and facilitate the deployment of AI-powered applications. Its key strategic technology partners are based in Hong Kong, providing support for its infrastructure and AI development. This positions Phoenix at the intersection of two disruptive trends: AI and blockchain.
C98 (Coin98)
Coin98 Labs is a provider of open infrastructure financial services, focusing on creating and developing a multi-chain ecosystem of DeFi protocols, applications, and NFTs. Its mission is to build superior DeFi infrastructure and make these services more accessible.
A significant development for the project was the announcement that its C98 token would be supported and offered custodial services by First Digital Trust, a digital asset custodian under Hong Kong-licensed financial services company Legacy Trust. This association with a regulated Hong Kong entity strengthens its standing within the compliant ecosystem.
👉 Explore more strategies for identifying promising crypto concepts
Frequently Asked Questions
What exactly is the "Hong Kong concept" in crypto?
The "Hong Kong concept" refers to cryptocurrencies, blockchain projects, and companies that are significantly aligned with Hong Kong's development as a regulated virtual asset hub. This includes projects based in the city, those working closely with its regulators, or those building products that support Hong Kong's key initiatives like asset tokenization and compliant finance.
Why are the new Hong Kong ETFs significant?
The approval of spot Bitcoin and Ethereum ETFs in Hong Kong is significant because they are the first such products in Asia. They provide a regulated, accessible, and familiar investment vehicle for both institutional and retail investors to gain exposure to major cryptocurrencies, potentially driving greater adoption and legitimizing the asset class in the region.
How does Hong Kong's regulatory approach differ from other regions?
Hong Kong is pursuing a clear regulatory framework aimed at protecting investors while encouraging innovation. Its licensing regime for Virtual Asset Service Providers (VASPs) and its openness to products like ETFs demonstrate a proactive approach to integrating crypto into the traditional financial system, contrasting with the more fragmented or restrictive approaches seen in some other jurisdictions.
What are the risks of investing in "concept" coins?
Investing in thematic or "concept" coins carries specific risks. Their value is often highly correlated with news and sentiment around that theme (e.g., positive Hong Kong regulatory news), making them more volatile. Investors should thoroughly research the project's fundamentals, tokenomics, and development progress beyond the overarching theme.
Are these Hong Kong-related projects only for investors in Asia?
No, these digital assets are traded on global cryptocurrency exchanges, making them accessible to investors worldwide. However, international investors should always be aware of their own local regulations regarding the purchase and trading of cryptocurrencies.
What other sectors beyond these tokens might benefit?
The growth of Hong Kong's crypto ecosystem benefits adjacent sectors like traditional finance (banks offering custodial services), legal and compliance services, tech infrastructure providers, and academic institutions focused on blockchain research. The increased activity and legitimacy can create a positive ripple effect throughout the regional economy.