The stablecoin revolution is gaining momentum in Hong Kong, drawing a wave of institutional interest from asset managers, fintech giants, and traditional financial players. Recent regulatory advancements, combined with strategic moves by public fund subsidiaries in Hong Kong, are laying the groundwork for a transformative shift in digital finance.
With the Hong Kong Securities and Futures Commission (SFC) approving upgrades to virtual asset trading licenses — including for firms like Guotai Junan International — investors are witnessing a new era where stablecoins, tokenized funds, and blockchain-based financial products are becoming mainstream. This regulatory green light enables platforms to offer direct trading of Bitcoin, stablecoins, and other digital assets, fueling market confidence and triggering a surge in related fintech stocks and ETFs.
👉 Discover how digital finance innovation is reshaping investment opportunities in Asia.
The Regulatory Catalyst: Hong Kong’s Stablecoin Framework
A pivotal development driving this transformation is the passage of the Stablecoin Bill by Hong Kong’s Legislative Council on May 21. Set to take effect on August 1, 2025, the legislation introduces a licensing regime for issuers of fiat-collateralized stablecoins — digital tokens pegged 1:1 to legal tender such as the Hong Kong dollar or U.S. dollar.
This regulatory clarity positions Hong Kong as a leading hub for compliant stablecoin innovation in Asia. It mandates strict oversight, including monthly reserve attestations and full asset custody requirements, ensuring transparency and user protection. These measures align with global best practices and elevate the credibility of stablecoins within institutional finance.
Already, major tech and financial firms are responding. Ant International and JD Blockchain (Hong Kong) have announced their stablecoin initiatives. Circle Innovation Technology has publicly previewed its upcoming HKDR — a Hong Kong dollar-pegged stablecoin — signaling growing market confidence in the region’s digital asset infrastructure.
Fund Managers Dive Into Tokenization and Stablecoin Ecosystems
Public fund subsidiaries based in Hong Kong are at the forefront of this digital transformation. Long before the stablecoin regulations were finalized, firms like CSOP Asset Management (Hong Kong), ChinaAMC (Hong Kong), and Bosera Funds (International) had already laid the groundwork through pilot programs, sandbox participation, and product innovation.
Participation in Government-Led Sandboxes
ChinaAMC (Hong Kong) has been actively involved in several government-backed initiatives aimed at testing real-world applications of stablecoins and tokenized assets:
- Stablecoin Sandbox: Exploring issuance, redemption, and cross-border payment use cases.
- Project Ensemble: A Hong Kong Monetary Authority (HKMA)-led initiative to develop a tokenized capital market ecosystem.
- e-HKD+ Pilot: Testing integration of digital Hong Kong dollar (e-HKD) with financial services.
Through partnerships with institutions like HSBC, Visa, ANZ Bank, and the HKMA, ChinaAMC successfully executed end-to-end tests involving on-chain payments, tokenized fund transactions, and investor subscriptions using digital currencies.
“Once SFC regulations are fully implemented, we plan to enable investors to subscribe to and redeem funds using regulated stablecoins,” said Alvin Chu, Head of Digital Assets and Family Wealth at ChinaAMC (Hong Kong). “This could significantly boost our fund management scale and improve capital efficiency.”
Such innovations represent a major leap toward integrating blockchain technology into traditional asset management.
Launching Real-World Asset (RWA) Tokenized Funds
Beyond sandboxes, these firms have already launched live products that bridge traditional finance with decentralized infrastructure.
In April 2024, six spot virtual asset ETFs debuted on Hong Kong exchanges:
- Bosera Bitcoin ETF and Bosera Ethereum ETF
- ChinaAMC Bitcoin ETF and ChinaAMC Ethereum ETF
- Harvest Bitcoin ETF and Harvest Ethereum ETF
These ETFs hold actual Bitcoin and Ethereum, allowing both cash and in-kind subscriptions — meaning investors can exchange their crypto directly for ETF shares. Trading is accessible via licensed Hong Kong brokers.
More recently, in February 2025, ChinaAMC launched Asia’s first retail tokenized money market fund denominated in Hong Kong dollars. This product brings real-world assets (RWA) — traditionally illiquid or off-chain — onto public blockchains, enabling faster settlement, lower costs, and broader accessibility.
Bosera Funds (International), in collaboration with HashKey Group, also received SFC approval for tokenized versions of USD and HKD money market ETFs — further expanding the universe of on-chain financial instruments available to institutional and retail investors.
👉 See how tokenized assets are unlocking new liquidity in modern finance.
Building Expertise: The Race for Web3 Talent
As demand grows for blockchain-integrated financial products, fund houses are aggressively recruiting talent with expertise in virtual assets.
Bosera Funds (International), for example, recently posted a job opening for a Virtual Asset Product Manager, requiring:
- At least three years of experience in blockchain, fintech, or digital payments
- Deep understanding of crypto markets, regulatory trends, and competitive landscapes
- Skills in designing full-stack product architectures covering investment, custody, clearing, payment, and yield distribution systems
This reflects a broader trend: asset managers are no longer treating digital assets as niche experiments but as core components of future product strategy.
ChinaAMC (Hong Kong) established a dedicated digital assets division in 2024 during its ETF rollout. The team spans product development, investment management, operations, compliance, and legal functions — creating an end-to-end structure capable of managing both traditional and tokenized offerings.
Looking ahead, the firm plans to expand its suite of tokenized funds and enable secondary market trading on regulated platforms. It is also exploring settlement via stablecoins and the digital Hong Kong dollar to enhance transaction speed and reduce counterparty risk.
Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar, Hong Kong dollar, gold, or government bonds. Major stablecoins undergo regular audits and maintain 100% collateralization for trust and transparency.
Q: Why are fund companies interested in stablecoins?
A: Stablecoins enable faster settlements, lower transaction costs, 24/7 market access, and seamless integration with blockchain-based financial products like tokenized funds and DeFi protocols — all while maintaining price stability compared to volatile cryptocurrencies.
Q: Are stablecoins safe to use in investment products?
A: Under Hong Kong’s new regulatory framework, only licensed issuers can operate. These entities must publish monthly reserve reports and hold assets in secure custody — significantly reducing risks related to fraud or insolvency.
Q: What are tokenized funds?
A: Tokenized funds represent traditional financial assets (like mutual funds or ETFs) converted into digital tokens on a blockchain. This allows for fractional ownership, instant transfers, automated compliance, and integration with digital wallets and exchanges.
Q: Can retail investors participate in these new products?
A: Yes. Products like ChinaAMC’s tokenized money market fund are specifically designed for retail access. Investors can buy into these funds through approved platforms using either fiat currency or compliant stablecoins.
Q: How does this impact the future of finance in Hong Kong?
A: By embracing stablecoins and tokenization, Hong Kong is positioning itself as a global leader in regulated digital finance. These innovations could attract institutional capital, enhance market efficiency, and create new investment channels for both local and international investors.
The convergence of regulation, technology, and institutional adoption is accelerating Hong Kong’s transition into a next-generation financial hub. As stablecoins gain traction and tokenized assets become commonplace, public fund subsidiaries are not just adapting — they’re leading the charge.
With continued innovation in product design, talent development, and ecosystem collaboration, the line between traditional finance and decentralized finance is blurring. For investors and institutions alike, the future of finance is being written on-chain — one stablecoin transaction at a time.
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