New Opportunities for Hong Kong's Web3 Ecosystem: Policy Upgrades Focus on Stablecoins and RWA, Multiple Institutions Rush to Position Themselves

The Hong Kong Special Administrative Region Government released the "Hong Kong Digital Asset Development Policy Declaration 2.0" on June 26. This latest policy document further refines the deployment and implementation measures based on the first declaration issued in October 2022, with more emphasis on practical applications and ecosystem development. The government reiterated its commitment to making Hong Kong a global innovation center for digital assets.

The new policy proposes the "LEAP" framework, focusing on four key directions:

1. Optimize laws and regulations: A comprehensive regulatory framework for digital asset service providers is being constructed, covering trading platforms, stablecoin issuers, trading services, and custody services. The Securities Regulatory Commission will become the main regulatory body responsible for the future licensing mechanism.

2. Expand the variety of tokenized products: This will promote the normalization of government bond tokenization and provide incentives for the tokenization of real-world assets (RWA). The government supports the trading of these tokenized products in the secondary market and plans to extend tokenization applications to areas such as precious metals, non-ferrous metals, and renewable energy.

3. Promote application scenarios and cross-industry cooperation: The stablecoin issuer licensing mechanism will be implemented on August 1 to promote the development of practical application scenarios. The government will also strengthen cooperation between regulatory agencies, enforcement agencies, and technology providers.

4. Talent and Partner Development: The government will collaborate with the industry and academia to promote talent development, positioning Hong Kong as a center for digital asset knowledge sharing and international cooperation.

Industry experts believe that this policy upgrade is not just a simple continuation, but a significant institutional transformation. It is particularly noteworthy that stablecoins will be subject to regulation, and the tokenization of RWA is regarded as a key industry, with tokenized ETFs and digital asset funds expected to enjoy tax benefits.

Stablecoins are evolving from "tool-based currency" to "infrastructure currency." The regulatory design in Hong Kong has clarified the rules regarding the management of statutory reserves by stablecoin issuers, redemption mechanisms, and risk prudence requirements, endowing them with both legal and technical attributes, making them more widely accepted.

The introduction of the new policy also confirms the trend of the industry moving from a "multi-chain prosperity" phase to a "main chain dominance" phase. In the future, chains capable of supporting RWA and compliance mechanisms will hold an advantageous position.

Recently, news regarding the landing of stablecoins and RWA projects in Hong Kong has been frequently reported. Multiple companies have begun exploring the application for stablecoin licenses or advancing RWA projects in Hong Kong.

In terms of regulatory compliance, more than 40 institutions in Hong Kong have upgraded their relevant licenses. As of June 24, 11 virtual asset trading platforms have obtained formal licenses. Several Chinese brokerage firms are also actively applying for the upgrade of licenses related to virtual asset trading.

Overall, the release of the "Policy Declaration 2.0" marks an important progress for Hong Kong in the development of digital assets. With the regulatory framework becoming increasingly完善, tokenized products gradually landing, 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 expected to become key growth areas in the next phase.