Hong Kong Unveils Expanded Digital Asset, Tokenization Policy

Hong Kong’s government today released its second policy statement on digital asset development, outlining plans to broaden both the range of real world assets (RWA) eligible for tokenization and their applications. The territory aims to establish regular sovereign digital bond issuances after successfully conducting the world’s largest such offerings.

“The Policy Statement 2.0 sets out our vision for DA development and showcases the practical use of tokenization through application, with a view to boosting the diversification of use cases,” said Financial Secretary Paul Chan. The government plans to introduce legislation governing digital asset dealers and custodians, with the Securities Futures Commission (SFC) serving as primary regulator. Banks conducting these activities will remain under Hong Kong Monetary Authority (HKMA) oversight.

Beyond the already advanced digital bond market, which will undergo review by the Treasury and HKMA, authorities want to tokenize commodities, particularly metals through warehouse receipts, though this will require careful monitoring given their history of fraud. The policy also explores tokenizing gold, solar panels and other physical assets.

The statement highlights Project Ensemble, Hong Kong’s sandbox for tokenization, tokenized deposits and wholesale central bank digital cy. The HKMA is now developing an Ensemble Infrastructure for interbank settlement of tokenized deposits.

Stablecoin legislation takes effect August 1, while local tech hub Cyberport will incubate tokenization projects. The government also emphasized developing talent and expanding the digital asset ecosystem. The policy positions Hong Kong as a key testing ground for tokenization innovation, building on the territory’s role as a bridge between mainland China’s blockchain applications and international markets.