The release of the Hong Kong Digital Asset Development Policy Declaration 2.0 (hereinafter “Declaration 2.0”) on June 26 has ignited a wave of institutional innovation and strategic collaboration across Hong Kong’s financial and technology sectors. This landmark policy marks a pivotal shift from experimental blockchain initiatives to a fully integrated, regulated digital asset ecosystem—positioning Hong Kong as a leading global hub for tokenized finance and Web3 infrastructure.
Backed by coordinated regulatory frameworks, public-private partnerships, and targeted funding programs, the city is rapidly advancing its vision of becoming a premier center for digital assets in Asia and beyond.
A Strategic Leap: From Experimentation to Institutionalization
The Declaration 2.0 is more than an update—it represents a systemic upgrade in Hong Kong’s digital finance strategy. As肖风 (Xiao Feng), Chairman and CEO of HashKey Group, emphasized, this evolution follows the “LEAP” strategic framework—spanning compliance regulation, asset tokenization, use case expansion, and talent development—to transition Hong Kong from a digital asset “testbed” into a globally competitive, scalable, and institutional-grade financial node.
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This transformation is underscored by a critical linguistic shift: the official move from “virtual assets” to “digital assets.” According to崔崧 (Cui Song), CEO of OSL Group, this reflects the industry’s maturation after three years of regulatory refinement and market development. The term “digital asset” signals legitimacy, alignment with traditional finance, and readiness for mainstream adoption—hallmarks of a financial revolution now gaining irreversible momentum.
Regulatory Clarity: Building a Secure and Scalable Ecosystem
On June 27, just one day after the Declaration 2.0 was unveiled, Hong Kong’s Financial Services and Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) launched a joint consultation on licensing regimes for virtual asset trading and custody service providers.
This initiative aims to create a comprehensive regulatory framework that ensures investor protection while attracting global participants. By aligning with the SFC’s ASPIRe roadmap for virtual asset supervision, the proposed rules will integrate Hong Kong into global digital liquidity networks—offering both institutional and retail investors secure, transparent, and efficient access to digital markets.
“We are sending a clear message,” said FSTB Secretary许正宇 (Xu Zhengyu). “As we build a world-leading digital asset center, we are equally committed to robust investor safeguards.”
The new licensing system is expected to strengthen market integrity, reduce systemic risks, and encourage institutional participation—key ingredients for long-term ecosystem sustainability.
Real-World Asset Tokenization: Bridging Traditional Finance and Web3
One of the most transformative aspects of Declaration 2.0 is its focus on real-world asset (RWA) tokenization—a mechanism that digitizes physical or financial assets like bonds, funds, commodities, and real estate into blockchain-based tokens.
Xiao Feng highlighted that RWA is not merely a technological upgrade but a structural reform enabling deeper integration between digital finance and the real economy. Several pioneering initiatives are already underway:
- The Hong Kong government offers stamp duty exemptions for tokenized exchange-traded funds (ETFs), reducing transaction costs and boosting market efficiency.
- The Hong Kong Monetary Authority (HKMA) is advancing interbank tokenized deposit settlements via its Ensemble platform, modernizing core financial infrastructure.
- Cyberport, in collaboration with regulators, is promoting regulatory technology (RegTech) and compliance sandboxes to support secure innovation in RWA applications.
These efforts signal a bold vision: to make Web3 not an isolated tech niche, but a fully interoperable component of global financial infrastructure.
Institutional Adoption Accelerates
The market response has been swift and substantial. On the heels of the Declaration 2.0, HashKey Chain announced the launch of GF Token—Hong Kong’s first daily redeemable tokenized security—issued by GF Securities (Hong Kong). This product enables continuous subscription and redemption on-chain, setting a new standard for liquidity and operational efficiency in tokenized capital markets.
“GF Token exemplifies the two-way integration between financial institutions and blockchain platforms,” said Xiao Feng. “HashKey Chain is committed to providing trusted infrastructure that powers Hong Kong’s rise as a dynamic on-chain financial hub.”
Meanwhile, OSL Group has rolled out an upgraded institutional trading solution, offering a unified, seamless digital asset trading experience. With over 50 partnerships with licensed brokers and banks in Hong Kong and daily trading volumes exceeding $100 million USD, OSL is playing a central role in institutional market-making.
Notably, OSL manages 64% of Hong Kong’s spot digital asset ETF assets and participates in the HKMA’s Ensemble sandbox with global asset managers like Franklin Templeton and China Asset Management, exploring tokenized funds and bonds.
Pioneering Tokenized Fund Products
In parallel, traditional financial institutions are embracing digital innovation. 连少冬 (Lian Shaodong), Chairperson of the Hong Kong Chinese Fund Industry Association and CEO of Boshi International, revealed that her firm launched Asia’s first spot virtual asset ETFs in 2024. In March 2025, they introduced the world’s first tokenized money market fund (MMF) ETF, followed by approval for staking activities in April—marking the first such move in the Asia-Pacific region.
“The Declaration 2.0 and the upcoming Stablecoin Ordinance will further strengthen our capabilities,” she said. “We aim to expand into new business areas, deepen traditional-digital finance convergence, and deliver better wealth management solutions.”
Anna Liu, CEO of HashKey Tokenisation, echoed this sentiment: “Our joint launch of the world’s first tokenized MMF ETF proves the viability of on-chain fund distribution. With potential secondary market access and tax-free transfer advantages under current policies, liquidity could increase dramatically.”
She added that Declaration 2.0’s explicit support for tokenizing government bonds, MMFs, RWAs, and precious metals aligns perfectly with their growth roadmap.
Funding Innovation: Cyberport’s Pilot Grant Program
To accelerate practical applications of blockchain technology, Cyberport launched the Blockchain and Digital Asset Pilot Grant Scheme on the same day as the Declaration 2.0. The program supports high-impact projects with up to HK$500,000 in funding, encouraging startups and enterprises to develop innovative use cases in digital finance.
“We’re proud to support experimentation and落地 (implementation) of digital asset solutions,” said Cyberport CEO郑松岩 (Zheng Songyan). “This scheme will boost industry awareness of governance and security while driving forward Hong Kong’s digital economy resilience.”
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Frequently Asked Questions (FAQ)
Q: What is the main goal of Hong Kong’s Digital Asset Policy Declaration 2.0?
A: The Declaration 2.0 aims to transform Hong Kong into a global digital asset hub by establishing clear regulations, promoting real-world asset tokenization, expanding use cases, and building talent—moving from pilot projects to full-scale institutional adoption.
Q: How does RWA (Real-World Asset) tokenization benefit investors?
A: RWA tokenization increases liquidity, reduces transaction costs, enables fractional ownership, and opens 24/7 markets. It also enhances transparency through blockchain tracking while integrating with traditional financial systems.
Q: Are retail investors protected under Hong Kong’s new digital asset framework?
A: Yes. The joint consultation by the SFC and FSTB emphasizes investor protection through licensing requirements, custody standards, disclosure rules, and risk management protocols—ensuring a secure environment for both retail and institutional participants.
Q: What role does HashKey Chain play in Hong Kong’s digital asset ecosystem?
A: HashKey Chain serves as a regulated blockchain infrastructure provider, supporting compliant issuance and trading of tokenized securities like GF Token. It acts as a foundational layer for institutional-grade on-chain financial services.
Q: Is Hong Kong the first in Asia to allow staking of virtual asset ETFs?
A: Yes. Hong Kong was the first market in Asia-Pacific to approve staking for virtual asset spot ETFs—a move that enhances yield opportunities for investors and strengthens market competitiveness.
Q: How can startups apply for the Cyberport Blockchain Pilot Grant?
A: Eligible projects can submit applications directly through Cyberport’s official channels. Priority is given to innovative use cases in asset tokenization, DeFi integration, RegTech solutions, and cross-border financial applications.
The Road Ahead
With strong government backing, clear regulatory direction, and active participation from financial institutions and tech innovators, Hong Kong is uniquely positioned to lead the next phase of digital finance.
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The convergence of policy, technology, and capital is no longer theoretical—it's operational. As asset tokenization gains traction and global investors take notice, Hong Kong’s ambition to become a global digital asset center is rapidly turning into reality.
Core Keywords: digital asset policy Hong Kong, real-world asset tokenization, virtual asset regulation, blockchain innovation Hong Kong, tokenized ETFs, Web3 financial hub, RWA finance, asset tokenization