Hong Kong’s government recently unveiled the Hong Kong Digital Asset Development Policy Declaration 2.0, reaffirming its ambition to become a global innovation hub in digital assets. Anchored on the LEAP strategic framework—Legal & Regulatory Enhancement, Expansion of Tokenized Products, Application Scenarios, and Partnerships—the policy marks a pivotal shift from experimental sandboxing to institutionalized, scalable, and globally integrated digital finance.
To unpack the implications of this transformative move, we spoke with Dr. Feng Xiao, Chairman and CEO of HashKey Group. A visionary in blockchain and digital finance, Dr. Xiao offers deep insights into how Policy 2.0 signals Hong Kong’s evolution from a Web3 testing ground into a regulated financial infrastructure player—where compliance is no longer optional but the essential entry ticket.
The Institutional Upgrade Behind Policy 2.0
Beyond Continuity: A Systemic Transformation
Dr. Xiao: The 2.0 declaration isn’t just an update—it’s a systemic upgrade. It moves beyond isolated pilots and establishes a coherent roadmap for integrating digital assets into mainstream finance through four pillars: compliant regulation, real-world asset (RWA) tokenization, use case expansion, and cross-sector collaboration.
This shift reflects Hong Kong’s intent to evolve from a “regulatory sandbox” to a global RWA issuance and trading hub, with clear rules, tax incentives, and institutional-grade infrastructure.
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Three Key Regulatory Shifts Defining the New Era
- Stablecoin Regulation Takes Effect in August 2025
Hong Kong will implement a formal licensing regime for stablecoin issuers on August 1, 2025, making it one of the first jurisdictions globally to provide legal clarity and legitimacy to stablecoins. This includes requirements for statutory reserve management, redemption mechanisms, and risk controls—transforming stablecoins from speculative tools into trusted financial infrastructure. - RWA Tokenization Becomes a Strategic Priority
The government plans to expand tokenization beyond bonds to include gold, green energy credits, electric vehicles, and warehouse receipts. This isn’t symbolic—it’s a structural push to digitize real-world value streams and bring them on-chain. - Tax Parity for Tokenized Financial Products
If legislation passes, tokenized ETFs will enjoy the same stamp duty and profits tax exemptions as traditional ETFs. Similarly, digital asset funds may qualify for profits tax relief. These measures align digital finance with conventional markets at the policy level.
Together, these changes form a "trinity" of institutional confidence:
- Regulatory certainty: Hong Kong will be the first jurisdiction to introduce a standalone license for digital asset custodians.
- Asset interoperability: Real-world assets and financial instruments can now coexist on-chain under equal footing.
- Tax competitiveness: Incentives make Hong Kong attractive for global capital deployment.
This trifecta positions Hong Kong not just as a Web3 supporter—but as a financial infrastructure builder.
Stablecoins: From Utility Tokens to Financial Backbone
Why Stablecoins Are Central to the Strategy
Dr. Xiao: Stablecoins are evolving from payment tools into foundational financial infrastructure. According to U.S. Treasury estimates, stablecoin circulation could reach $3.7–3.9 trillion by 2030—surpassing the GDP of many nations.
Hong Kong’s regulatory approach ensures that stablecoins meet prudential standards required by banks, payment systems, and public institutions. By imposing strict reserve and redemption rules, they’re transforming what was once a decentralized experiment into a regulated monetary layer.
HashKey’s Role in Advancing Stablecoin Adoption
HashKey is actively building across three dimensions:
- Supporting global compliant stablecoins on its exchange to enhance cross-border payment efficiency for e-commerce and international users.
- Piloting on-chain stablecoin settlements to streamline OTC and exchange clearing processes.
- Developing stablecoin-linked RWA products, such as tokenized bonds or money market funds, enabling yield-bearing instruments on-chain.
These initiatives reflect a broader trend: the convergence of fiat-backed stability with programmable blockchain efficiency.
RWA Tokenization: Bridging Finance and Reality
Real Assets Go On-Chain—Permanently
Dr. Xiao: RWA is the bridge between digital finance and the physical economy. The new policy doesn’t just encourage tokenization—it institutionalizes it.
Beyond government-issued tokenized bonds, sectors like precious metals, renewable energy, and logistics are now in scope. This isn’t about novelty; it’s about reforming asset layers to enable fractional ownership, 24/7 settlement, and global liquidity.
Key enablers already in motion:
- The Ensemble platform by HKMA facilitating interbank tokenized deposit settlements.
- Cyberport collaborating with regulators on RegTech solutions and compliance sandboxes.
- Proposed stamp duty exemptions for tokenized ETFs—removing cost barriers to adoption.
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These developments confirm that Hong Kong isn’t merely fostering Web3—it’s integrating Web3 into traditional finance, creating a hybrid system where both operate seamlessly.
HashKey’s Commitment to RWA Infrastructure
As a licensed platform, HashKey is focused on:
- Enhancing HashKey Chain as a secure, compliant environment for RWA issuance.
- Designing secondary market mechanisms for tokenized assets.
- Co-building integrated financial scenarios with traditional institutions—such as “bond + token + settlement” ecosystems.
We believe the future belongs to platforms that can securely connect off-chain value with on-chain execution.
The Rise of Digital Twins: Where Crypto Meets Reality
From “Multi-Chain Hype” to “Mainchain Maturity”
The original crypto divide—between fully on-chain native assets (like BTC/ETH) and closed legacy systems—is closing. Stablecoins and RWAs are creating a middle ground: digital twins, where real-world assets are represented and traded on-chain.
This era prioritizes not quantity of chains but quality of infrastructure. The winning chains will be those capable of supporting regulated assets, compliant transactions, and institutional participation.
As Dr. Xiao puts it:
“We’re entering the age of digital twins—where every measurable, ownable asset can become a tradable token. Compliance isn’t a barrier; it’s the entry ticket.”
Building a Sustainable Web3 Ecosystem: Talent, Tax, and Global Reach
Long-Term Enablers Beyond Technology
Policy 2.0 recognizes that lasting growth requires more than regulation—it demands ecosystem support:
- International Collaboration: Hong Kong will work with OECD, IOSCO, and others to build cross-border regulatory frameworks and mutual recognition agreements.
- Tax Incentives: Profits tax exemptions for digital asset funds and family offices investing in tokenized assets will attract institutional capital.
- Talent Development: Web3, AI, and blockchain skills are now prioritized in Hong Kong’s talent admission schemes, with support for university programs and startup incubators.
These policies create a moat of certainty, encouraging long-term investment from global institutions, developers, and investors.
HashKey’s Vision: A Trusted Bridge Between Worlds
Not Just an Exchange—A Financial Gateway
Dr. Xiao: HashKey isn’t chasing listings or short-term volume. Our mission is to build a trusted bridge between traditional finance and digital economies.
Our model rests on three pillars:
- High liquidity
- Low slippage
- Full regulatory compliance
We aim to be the preferred on- and off-ramp partner for virtual asset exchanges worldwide, offering competitive fiat gateways across multiple markets.
In this new era shaped by Policy 2.0, we’re committed to building next-generation financial infrastructure—and helping define what responsible innovation looks like in Web3.
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Frequently Asked Questions (FAQ)
Q: What is LEAP in Hong Kong’s digital asset strategy?
A: LEAP stands for Legal & Regulatory Enhancement, Expansion of Tokenized Products, Application Scenarios, and Partnerships—a comprehensive framework guiding Hong Kong’s digital asset development.
Q: When will Hong Kong regulate stablecoins?
A: The stablecoin licensing regime officially takes effect on August 1, 2025, making Hong Kong one of the first jurisdictions with formal stablecoin oversight.
Q: Are tokenized ETFs tax-exempt in Hong Kong?
A: If legislation passes, tokenized ETFs will receive the same stamp duty and profits tax exemptions as traditional ETFs—leveling the playing field.
Q: What types of real-world assets (RWA) are being tokenized?
A: Plans include government bonds, gold, green energy credits, electric vehicles, and logistics assets like warehouse receipts.
Q: How does Hong Kong support Web3 talent development?
A: Web3-related skills are now part of Hong Kong’s priority talent list, with government-backed initiatives to train professionals through universities and innovation hubs.
Q: Why is compliance called the “entry ticket” in Web3 now?
A: As digital assets integrate into mainstream finance, regulatory compliance ensures trust, scalability, and institutional adoption—making it essential for long-term success.
Core Keywords:
Hong Kong digital asset policy, RWA tokenization, stablecoin regulation, LEAP strategy, compliant Web3 platform, tokenized ETFs, digital asset taxation, HashKey Group