On June 26, the Hong Kong government released its second official policy statement on digital asset development, signaling a stronger push towards real-world asset (RWA) tokenization and broader crypto regulation. The updated framework, known as Policy Statement 2.0, outlines Hong Kong’s strategy to strengthen legal oversight, expand asset tokenization, support new blockchain applications, and develop industry talent. The announcement builds upon the original 2022 digital asset policy and introduces a new strategic model labeled “LEAP,” designed to guide the next phase of the territory’s digital asset ecosystem.
A Unified Regulatory System for Digital Asset Providers
Policy Statement 2.0 introduces a unified legal and regulatory structure aimed at consolidating oversight for all digital asset service providers. The government plans to implement dedicated licensing regimes for crypto exchanges, stablecoin issuers, digital asset dealers, and custodians. The Securities and Futures Commission (SFC) will act as the lead authority for licensing digital asset dealing and custody providers.
Meanwhile, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) will carry out a legal review to ensure the proper integration of tokenized financial instruments into existing financial systems. This legal review will address key areas such as settlement, registration, and transaction records, focusing especially on the issuance and handling of tokenized bonds and similar instruments.
Banks conducting these services will remain under the oversight of the HKMA. Public consultations on the new licensing regimes are scheduled to begin shortly. In an effort to integrate blockchain more deeply into public finance, the government plans to make tokenized government bonds a regular part of its debt issuance strategy. Authorities intend to standardize this process and promote transparency.
As part of this plan, the government will also clarify tax and stamp duty treatments for tokenized exchange-traded funds (ETFs). This clarification aims to remove tax-related uncertainties and pave the way for these instruments to be traded on licensed digital asset platforms. Secondary market trading for tokenized ETFs will be permitted, adding liquidity and offering investors new access points.
New Asset Classes Enter the Tokenization Ecosystem
Beyond government bonds and ETFs, the policy expands tokenization into other sectors. New initiatives will cover physical assets such as gold, non-ferrous metals, and solar panels. Authorities aim to extend tokenization into commodities using warehouse receipts, but acknowledge the need for strict monitoring due to past fraud cases involving such assets.
These steps reflect Hong Kong’s broader goal of increasing the range of tokenized products available in financial markets. The goal is to improve market efficiency and broaden access to traditionally illiquid or complex asset types. As part of the broader framework, a licensing regime for stablecoin issuers will come into effect on August 1.
Under this regime, only licensed entities will be permitted to issue or operate stablecoins within Hong Kong’s jurisdiction. The regulation aims to ensure the stability, backing, and consumer protection around stablecoin usage. The government also welcomes proposals for testing licensed stablecoins in real-world applications, including payment solutions and financial services. Authorities plan to collaborate with private sector players to explore practical use cases and assess operational readiness.
Infrastructure Development Through Cross-Sector Cooperation
To support these initiatives, Hong Kong will prioritize the development of digital asset infrastructure. Policy Statement 2.0 calls for cooperation between regulators, law enforcement agencies, and technology firms. The aim is to establish secure and scalable systems capable of handling increased volumes of tokenized assets.
One example of infrastructure planning includes Project Ensemble, a sandbox platform for experimenting with tokenized deposits and wholesale central bank digital currency. The Hong Kong Monetary Authority is currently developing an Ensemble Infrastructure to support interbank settlements of tokenized deposits.
In line with efforts to boost blockchain innovation, Cyberport, a government-backed tech hub, will introduce a funding scheme targeting blockchain and digital asset projects. The program will focus on identifying high-impact applications that demonstrate practical and scalable uses of tokenization.
Selected projects will receive support in terms of funding and industry partnerships, with the goal of building reference models that can inform future developments. These initiatives are aimed at driving local innovation and improving the commercial viability of tokenization technologies.
Educational Programs and Workforce Development Plans
To meet the talent demands of a growing digital asset sector, the Hong Kong government is focusing on education and skill development. Authorities are partnering with universities, research institutions, and industry groups to design joint research programs and training initiatives.
Plans include building a sustainable pipeline of professionals with expertise in digital asset management, blockchain engineering, and regulatory compliance. These efforts aim to position Hong Kong as a knowledge-sharing center for digital finance and increase global collaboration.
Policy Statement 2.0 also emphasizes global cooperation. The government intends to work with international regulators and institutions to align legal standards and encourage safe cross-border digital asset transactions. These actions are intended to ensure consistency and risk mitigation in the rapidly growing digital finance space. Authorities believe that a cooperative approach can strengthen investor confidence and create an environment that supports responsible innovation across markets.
Statement by Financial Officials on Broader Goals
Financial Secretary Paul Chan stated that blockchain technology can lower transaction costs and increase the efficiency of financial systems. He explained that the updated policy aims to integrate tokenization into both the financial sector and the broader economy.
According to Chan, the policy is expected to contribute to economic diversification and strengthen Hong Kong’s position as a financial center. Secretary for Financial Services and the Treasury Christopher Hui added that the LEAP framework is designed to connect traditional finance with emerging digital tools, ensuring future resilience.
Policy Statement 2.0 marks a significant shift in Hong Kong’s digital asset approach. With new licensing rules, expanded tokenization use cases, and public-private collaboration, the government aims to establish a mature and secure ecosystem for digital finance. Key components such as stablecoin regulation, tokenized bond expansion, and infrastructure development signal a clear intent to modernize financial services through blockchain integration.
As these measures unfold, Hong Kong positions itself as a key jurisdiction for digital asset innovation and cross-sector collaboration. The combination of legislative clarity, technological development, and institutional partnerships forms a comprehensive roadmap for integrating real-world assets into blockchain systems. The structured rollout reflects an emphasis on security, transparency, and regulatory accountability.
