The financial sector is experiencing a transformative shift with the integration of blockchain technology and digital assets. Recent approvals for virtual asset trading licenses mark a significant step forward, particularly in Hong Kong, which is rapidly establishing itself as a global hub for virtual asset innovation. This movement is not just about cryptocurrency trading; it encompasses a broader range of services, including tokenized securities, stablecoins, and real-world asset (RWA) tokenization, creating new opportunities for financial institutions and investors alike.
Major Milestones in Virtual Asset Licensing
The regulatory landscape for virtual assets is evolving quickly, with several key developments highlighting this progress.
Guotai Junan International's Pioneering Approval
Guotai Junan International has achieved a landmark status by becoming the first Chinese-backed securities firm in Hong Kong to receive approval for providing comprehensive virtual asset-related trading services. This license allows the firm to offer virtual asset trading, provide advisory services for these assets, and issue and distribute virtual asset-related products, including over-the-counter derivatives.
The company's journey into virtual assets began in early 2024 when it launched structured products based on virtual asset spot ETFs. It subsequently received permission from Hong Kong's Securities and Futures Commission (SFC) to operate as an introducing agent for virtual asset trading platforms. By the first half of 2025, it gained approval to distribute tokenized securities and provide related advice, further solidifying its position in this emerging market.
GF Securities and the "GF Token"
In another significant development, HashKey Chain partnered with GF Securities (Hong Kong) to launch "GF Token," the first daily redeemable tokenized securities product. This product is fully deployed and issued on-chain through HashKey Chain and supports multi-point sales and custodianship models, setting a benchmark for on-chain tokenized assets.
"GF Token" is issued based on the credit of GF Securities (Hong Kong) and is available to institutional and high-net-worth professional investors. It offers three currency options: USD, HKD, and offshore RMB. The USD product's yield is pegged to SOFR (Secured Overnight Financing Rate), providing daily interest calculation, high liquidity, and on-chain traceability, making it suitable for cash management and on-chain asset allocation.
This issuance received comprehensive technical and platform support from HashKey Group's subsidiaries, including HashKey Cloud, HashKey Tokenisation, and HashKey Exchange, representing a key advancement for RWA on-chain initiatives in Hong Kong.
Technological Support from Firms like Hundsun Technologies
To support these new services, technology providers are playing a crucial role. For instance, Hundsun Technologies' subsidiary, Hengyun Technology, has developed virtual asset trading systems for several Chinese-backed securities firms. As one of Hong Kong's first providers of such systems, Hengyun Technology has helped numerous financial institutions securely connect with virtual asset exchanges, ensuring smooth transactions and real-time data processing.
Since December 2024, Hengyun Technology has collaborated closely with securities firms, deploying specialized technical teams to quickly respond to client needs and ensure that trading systems are ready when licenses are approved. The company also maintains a dedicated policy research team to stay updated on regulatory changes in Hong Kong and globally, continuously iterating its systems to meet compliance requirements.
The Strategic Role of Stablecoins in Finance
Stablecoins are emerging as a critical component of the modern financial ecosystem, with potential applications extending far beyond simple transactions.
Business Strategies for Securities Firms
According to Professor Tian Lihui of Nankai University, securities firms can develop their stablecoin-related businesses around four key strategies: underwriting, trading, product development, and investment research.
Firms can assist enterprises in issuing tokenized bonds and provide asset custody services leveraging their compliant licenses. They can also help build secondary markets using stablecoins as settlement units, enhancing liquidity through algorithmic market making. Additionally, designing structured products based on stablecoin yields can lower investment thresholds for retail investors. Finally, offering investment research and compliance advisory services tailored to different regulatory environments is crucial.
The Expansion Potential of Stablecoins
From an international business perspective, stablecoins could significantly aid securities firms in expanding their balance sheets. Their potential to become major buyers of short-term government bonds is particularly promising.
U.S. Treasury Secretary Scott Bessent has noted that stablecoins have the potential to become significant buyers of U.S. Treasury bonds. He predicts that the market capitalization of USD-denominated stablecoins could exceed $2 trillion within three years, representing a nearly tenfold increase from current levels.
Hong Kong's Evolving Regulatory Framework
Hong Kong is proactively shaping its regulatory environment to foster innovation while ensuring stability and security in the virtual asset market.
The Second Policy Declaration on Virtual Assets
On June 26, 2025, Hong Kong released its second Policy Declaration on Development of Virtual Assets, building on the first declaration from October 2022. This update provides a clearer roadmap for establishing Hong Kong as an international virtual asset center.
Key elements of the declaration include:
- Enhanced Regulatory Framework: The Stablecoin Issuer Regulatory Regime is set to be implemented within 2025, requiring all stablecoin operators in Hong Kong to be licensed and meet reserve audit requirements.
- Optimized Exchange Licensing: The scope of Virtual Asset Service Provider (VASP) licenses has been expanded to include support for the tokenization of physical assets like real estate and artwork.
- DeFi Regulatory Sandbox: A "compliance sandbox" mechanism has been proposed for decentralized finance (DeFi) protocols, allowing certain projects to operate under regulatory supervision.
- Tokenized Financial Market breakthroughs: The government announced its first issuance of tokenized green bonds settled on blockchain and denominated in Hong Kong dollar stablecoins in Q4 2025, available for institutional investors.
- Retail Access Expansion: Licensed banks and securities firms are now permitted to provide virtual asset services directly to retail customers, covering assets like BTC, ETH, and government-approved tokenized securities.
Institutional Infrastructure and Web3 Development
Hong Kong is also investing heavily in the underlying infrastructure for digital assets. The "digital Hong Kong dollar" (e-HKD) pilot has progressed, with testing completed for the wholesale central bank digital currency (wCBDC) and a move into designing retail application scenarios focused on cross-border payments and smart contract settlements.
New guidelines for virtual asset custodians require independent custody, insurance coverage, and on-chain fund segregation using solutions like multi-party computation (MPC). Furthermore, a HK$1 billion "Web3.0 Development Fund" has been established to support local startups in developing NFTs, metaverse applications, and chain games, aiming to attract overseas talent.
Cross-Border Cooperation
Hong Kong is strengthening its international ties by signing compliance interoperability agreements with Middle Eastern countries like the UAE and Saudi Arabia, allowing for mutual recognition of regulatory sandboxes. It is also participating in pilot programs for cross-border virtual asset monitoring led by the Financial Action Task Force (FATF).
Key Players in Hong Kong's Stablecoin Market
The competition to issue stablecoins in Hong Kong is intense, involving a diverse mix of major corporations from various sectors.
- JD.com: The e-commerce giant has expressed its intention to apply for a stablecoin license, hoping to launch its stablecoin by early Q4 2025. JD.com aims to create a stablecoin that can be used for global payments, emphasizing transparency and public verifiability on a public blockchain.
- Ant Group: Both Ant International and Ant Digital Technologies have publicly stated their plans to apply for stablecoin licenses in Hong Kong. Ant International focuses on using stablecoins as infrastructure for cross-border payments to reduce costs and improve efficiency. In contrast, Ant Digital Technologies explores their use in RWA transactions and broader blockchain applications.
- Rondezvois Innovation: Backed by former HKMA chief Norman Chan, this company is developing a Hong Kong dollar stablecoin targeting three main scenarios: trading on compliant exchanges, cross-border payments and trade, and serving as an intermediary for tokenized assets.
- Local Hong Kong Consortiums: Established players like Standard Chartered Hong Kong are also entering the fray, forming consortiums with Web3 firms and telecommunications companies to explore stablecoin issuance.
The Rapid Growth of Real-World Asset (RWA) Tokenization
The tokenization of real-world assets is gaining tremendous momentum, creating a bridge between traditional finance and blockchain technology.
Market Size and Global Trends
As of June 1, 2025, the total global market capitalization of stablecoins has soared to approximately $230.7 billion, a staggering increase of over 5,745% from around $3.95 billion in 2019. According to data from rwa.xyz, the total market size for RWA reached approximately $25.5 billion by June 30, 2025, growing by 5.7% in just the previous month, indicating extremely rapid expansion.
Notable RWA Projects
China's RWA market began accelerating in 2024, with several landmark projects launched across various sectors:
- Langsun Group & Ant Digital Technologies: Completed the first RWA financing in China based on new energy assets, using charging piles and energy storage equipment as anchor assets to raise approximately RMB 100 million.
- GCL Energy Technology & Ant Digital Technologies: Executed a RWA project involving over RMB 200 million based on photovoltaic (PV) assets, connecting domestic green assets with offshore capital.
- Dalian Xiaoping Island Digital Island Project: A pioneering tourism-related RWA project involving a RMB 2 billion investment to develop a self-driving car camp and revitalize闲置资源.
- Shanghai Zuoan Xinhui "Malu Grape" RWA: An agricultural project that tokenized the value and production data of the famous "Malu Grape" brand to raise funds for smart agriculture infrastructure.
These projects demonstrate the practical application of RWA in unlocking the value of illiquid assets and providing new financing avenues for businesses.
Beneficial Segments of the Industry Chain
The growth of virtual assets and RWAs benefits several key industry segments:
- Stablecoin Infrastructure: Companies providing the underlying technology for issuing, managing, and transacting with stablecoins.
- RWA Solution Providers: Firms that facilitate the tokenization of physical and financial assets, including technology platforms and advisory services.
- Securities IT: Developers of trading systems, software, and platforms that enable traditional securities firms to integrate virtual asset services.
- Cross-Border Payment Solutions: Companies leveraging blockchain and stablecoins to improve the efficiency and reduce the cost of international transactions.
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Frequently Asked Questions
What is a virtual asset trading license?
A virtual asset trading license is a regulatory approval granted by authorities like Hong Kong's SFC that allows financial institutions to offer services related to virtual assets. This includes operating trading platforms, providing advice on these assets, and distributing related financial products in a compliant manner.
How do stablecoins work in traditional finance?
Stablecoins are digital currencies pegged to stable assets like fiat currencies (e.g., USD, HKD). They combine the instant processing and security of cryptocurrencies with the stable value of traditional money. In finance, they are used for settlements, as collateral, and to create new structured products, improving efficiency and reducing counterparty risk.
What are the benefits of tokenizing real-world assets (RWA)?
Tokenizing RWAs unlocks liquidity for traditionally illiquid assets like real estate or infrastructure. It allows for fractional ownership, making investments accessible to a broader range of investors. It also increases transparency through blockchain-based record-keeping and can streamline processes like compliance and dividend distributions via smart contracts.
What are the main risks associated with investing in virtual assets?
Key risks include high market volatility, potential regulatory changes that could affect asset value, technological risks associated with blockchain networks, and cybersecurity threats like hacking. Investors should conduct thorough research and ensure they use compliant and secure platforms.
How is Hong Kong positioning itself in the global virtual asset market?
Hong Kong is establishing a comprehensive regulatory framework that encourages innovation while protecting investors. By licensing major exchanges and securities firms, promoting RWA projects, and developing its digital currency (e-HKD), it aims to become a leading and trustworthy international hub for digital assets.
Can retail investors participate in the tokenized asset market?
Yes, regulations are evolving to allow greater retail participation. For example, Hong Kong now permits licensed firms to offer certain virtual asset services to retail investors. However, these products can be complex and risky, so investors should fully understand them and seek professional advice if needed.