The competition for on-chain development in Hong Kong is heating up, with giants like JD.com and Ant Group accelerating the implementation of RWA in Hong Kong

Author: Nancy, PANews

In the current wave of global asset tokenization, Hong Kong is becoming a key experimental field for on-chain asset layout. Recently, the on-chain layout is also entering a period of accelerated evolution: on one hand, the Hong Kong government has launched multiple measures to promote tokenization experiments; on the other hand, several internet and traditional financial enterprises, such as JD Technology, Futu Securities, Ant Group, and Guotai Junan, are actively advancing their RWA (Real World Asset) layouts.

According to PANews, many domestic companies holding physical assets are also taking action, seeking to put their assets on-chain for tokenized financing. The most common compliant solution is to confirm domestic assets on a consortium chain, then establish a holding entity in Hong Kong to control the domestic assets before proceeding with token issuance for financing. These companies span agriculture, new energy, and real estate, and the essence of exploring RWA is still for financing, but currently, the RWA industry in Hong Kong is still feeling its way forward.

Hong Kong's RWA Accelerates, Multiple Institutions Speed Up On-Chain Layout

The on-chainization of real assets is becoming a key pivot for the deep integration of TradeFi and crypto finance, and a "mutual pursuit" financial revolution is accelerating in Hong Kong. In recent months, companies such as JD Technology, Ant Group, Guotai Junan International, China Carbon Neutrality, and HashKey Chain are deeply participating in RWA innovation and implementation through various paths, including stablecoin issuance, traditional asset tokenization, and RWA infrastructure construction.

JD Technology: Issuing Stablecoins in Hong Kong, Advancing RWA Layout

According to Zero One Think Tank, JD Technology Group recently posted multiple RWA-related job openings on BOSS Zhipin, positioning it as a "strategic layout in the field of new energy and blockchain." The job openings include positions for Director of Asset Management System Products and Director of Solutions, primarily responsible for the design of asset management systems for new energy assets RWA, asset acquisition, and industrialization. Notably, JD has explicitly required that product design must seamlessly connect with JD's stablecoin and digital RMB. Additionally, JD Technology Group is also recruiting for a position focused on "overseas financial business development," emphasizing the promotion of stablecoin business implementation.

In July last year, JD announced its entry into the stablecoin space, planning to issue a stablecoin JD-HKD pegged 1:1 to the Hong Kong dollar. The reserves for this stablecoin consist of highly liquid and credible assets, which will be securely held in independent accounts at licensed financial institutions and verified through regular disclosures and audit reports. Currently, the project has officially entered the Hong Kong Monetary Authority's stablecoin sandbox pilot.

It is worth mentioning that JD's subsidiary, JD Coinlink Technology (Hong Kong) Limited, has also reached a cooperation agreement with Tianxing Bank, jointly established by Xiaomi Group and Shenchang Group. As a licensed virtual bank, Tianxing Bank will provide financial compliance support for JD's exploration of cross-border payment solutions based on stablecoins within the framework of the Monetary Authority's stablecoin sandbox. The bank is 50.30% owned by Xiaomi Group and 44.11% owned by Futu Group.

To further advance its stablecoin strategy, JD announced in March this year the recruitment of a stablecoin policy researcher, requiring a strong financial background and policy research capabilities, focusing on domestic and international stablecoin policies and regulations, and maintaining communication with regulatory authorities.

Regarding the issuance of stablecoins, Dr. Shen Jianguang, Vice President of JD Group, pointed out in a recent speech that stablecoins belong to decentralized commercial issuance at the company level, with minimal fluctuations influenced by macroeconomic factors. The issuance of stablecoins by JD aims to further enhance JD's global supply chain and cross-border payment capabilities. Once approved for issuance in Hong Kong, stablecoins are expected to be implemented in multiple countries and regions, but must still comply with the regulatory rules of different countries, such as the EU's MiCA requiring local company establishment and licensing applications, while Japan accepts token issuance from Hong Kong. JD will actively promote global compliance layout and build stablecoin infrastructure.

Ant Group: Advancing Technology and Scenarios, Accelerating RWA Layout

Starting in 2024, Ant Group has begun to accelerate its layout in the RWA field. In May, as one of the first participants from the private sector, Ant Group joined the Hong Kong Monetary Authority's Ensemble project sandbox, participating in the technical testing of tokenized deposits, exploring asset tokenization scenarios, and formulating industry standards, and subsequently recruiting RWA architects in Hong Kong. Following this, Ant Group has frequently made moves in RWA applications, such as collaborating with Sui to promote RWA tokenization in the ESG (Environmental, Social, and Governance) field, successfully completing the first domestic RWA case involving 200 million RMB based on photovoltaic physical assets in partnership with green energy service provider GCL-Poly, participating in China's first green energy battery swap asset RWA project in collaboration with Conflux, and providing technical support for the global first battery swap physical asset RWA for Xunying Group.

While continuously expanding application scenarios, Ant Group is also deepening its technological foundation. For example, in October last year, Ant Group publicly launched its "Two Chains and One Bridge" platform designed for RWA business, aiming to help more mainland new energy assets go to Hong Kong for RWA, achieving technological empowerment of physical assets. In April this year, Ant Group's open-source next-generation blockchain virtual machine DTVM integrated the SmartCogent large language model development framework and is fully compatible with the Ethereum ecosystem, eliminating language barriers for RWA scenario developers in cross-platform development.

Earlier this month, Ant Group launched the Layer2 blockchain Jovay for overseas markets, a high-performance trusted blockchain platform specifically designed for RWA transactions, supporting 100,000 TPS and 100 milliseconds response time. Jovay employs a dual proof system of TEE and zk, seamlessly connecting with Layer1 blockchains like Ethereum, facilitating the conversion of global new energy assets into tradable digital assets.

Guotai Junan International: Officially Launching Tokenized Securities Business Layout

On May 11, Guotai Junan International announced that it had submitted relevant business plans for tokenized securities distribution and digital bond issuance, in accordance with the Hong Kong Securities and Futures Commission's "Circular on Intermediaries Engaging in Tokenized Securities-Related Activities," both of which have been confirmed by the regulatory authority with no further issues.

The institution stated that Guotai Junan International submitted a wealth management-related business plan to the Hong Kong Securities and Futures Commission on January 21, 2025, intending to distribute tokenized securities to clients or provide advice on tokenized securities based on its existing securities trading foundation. The planned types of tokenized securities include structured products linked to multiple underlying assets (such as structured notes and OTC derivatives), funds recognized by the Securities and Futures Commission, non-recognized funds, and bonds. The Hong Kong Securities and Futures Commission sent a confirmation email on May 7, 2025, stating that there were no further issues with the plan. Additionally, Guotai Junan International submitted a digital bond issuance business plan to the Hong Kong Securities and Futures Commission based on its existing bond issuance business, and in the future, will be capable of serving as an overall coordinator, syndicate capital market intermediary, or settlement agent in digital bond issuance projects. The Hong Kong Securities and Futures Commission confirmed on April 2, 2025, that there were no further issues with this plan.

China Carbon Neutrality: Plans to Promote Green Asset Tokenization

Earlier this month, the Hong Kong-listed company China Carbon Neutrality announced that it had signed a strategic cooperation framework agreement with Gaoer Street Holdings Limited (Gaoer Street Group), engaging in equity cooperation, business collaboration, and other multi-field cooperation. According to the agreement, China Carbon Neutrality will consider strategic investment in Gaoer Street Group's security token issuance platform CSpro and jointly explore the development of innovative financial instruments in the green asset field under Hong Kong's legal and regulatory framework, promoting the implementation of green asset tokenization projects, including carbon assets.

HashKey Chain: Has Reached RWA On-Chain Cooperation with Over 200 Institutions

In March this year, HashKey Chain announced that the tokenized US dollar money market fund CPIC Estable MMF, initiated and managed by China Pacific Insurance Investment Management (Hong Kong), has been successfully deployed to HashKey Chain, with a subscription scale of 100 million USD on its first day of operation. Through deployment on HashKey Chain, CPIC Estable MMF can provide digital asset allocation tools for institutional investors. In the same month, HashKey Group announced that the tokenization plan for Hong Kong dollar and US dollar money market ETFs, jointly launched with Bosera Fund (International) Co., Ltd., has been approved by the Hong Kong Securities and Futures Commission (SFC). This is the world's first tokenized money market ETF and one of the important projects for innovative exploration of RWA tokenization in the Hong Kong Monetary Authority's (HKMA) Ensemble sandbox project.

According to HashKey Eco Labs CEO Kay, as of now, the HashKey Chain team has engaged in in-depth connections with over 200 institutions, reaching intentions for RWA on-chain cooperation across various fields, including traditional financial institutions, asset management companies, technology enterprises, and Web3 native projects. They are exploring the tokenization of traditional financial products such as money market funds (MMF), ETFs, and bonds, aiming to achieve 24/7 global market access, real-time trading, and improved capital efficiency through blockchain.

Wall Street Accelerates On-Chain, How Can Hong Kong Seize the New Heights of RWA?

Currently, the main driving force behind global tokenization innovation still comes from the United States. Traditional financial institutions on Wall Street, represented by BlackRock, Goldman Sachs, and JPMorgan Chase, are accelerating the inflow of traditional funds onto the chain through Bitcoin spot ETF channels and traditional asset tokenization.

At the same time, the U.S. is taking the lead in providing policy support. For instance, the new SEC Chair Paul Atkins recently stated at the latest crypto roundtable that the migration of securities from off-chain systems to on-chain systems is similar to the evolution of audio recordings from vinyl records to cassette tapes to digital software decades ago. This change is expected to fundamentally transform the securities market through new methods of issuance, trading, holding, and usage. The SEC must keep pace with innovation and assess whether the existing regulatory framework needs adjustment to accommodate the development of on-chain securities and other crypto assets. Additionally, regulatory authorities should establish a reasonable regulatory framework for the crypto asset market, formulating clear rules to regulate issuance, custody, and trading, while continuously cracking down on illegal activities.

In contrast, the development pace of Hong Kong enterprises in the field of RWA tokenization is relatively cautious. However, it is well known that Hong Kong itself possesses rich financial resources, and its financial infrastructure, mature capital markets, and efficient regulatory system make it one of the global financial centers. Tokenization, as an innovative financial tool, once RWA is promoted on a larger scale in Hong Kong, will show tremendous growth potential in traditional finance, further driving the deepening and globalization of Hong Kong's financial market.

The conservative attitude of Hong Kong institutions towards RWA tokenization mainly stems from the strictness of compliance requirements. The Hong Kong financial regulatory system emphasizes stability and compliance, ensuring that financial innovation does not compromise market stability and transparency. Therefore, how to achieve innovation within the framework of Hong Kong's legal and regulatory policies is an important challenge faced by local institutions. As mentioned at the beginning of the article, some compliant paths have already been explored in practice. Beyond compliance, the industry's attention to regulatory attitudes is due to the fact that policy trends directly affect the flow of funds. Currently, RWA assets are poised for development, and the situation of funds in the market is what everyone is more concerned about.

However, Hong Kong is actually in a proactive stance regarding tokenization policies. For example, the Ensemble project launched by the Hong Kong Monetary Authority (HKMA) aims to explore the feasibility of tokenized assets in practical application scenarios through sandbox testing, which is significant for promoting market understanding and application. Additionally, Hong Kong is exploring a Hong Kong dollar stablecoin and is working to establish a regulatory framework for stablecoins, including the "Stablecoin Bill," which is scheduled for a second reading debate in the Legislative Council on May 21. If the bill is passed, the Monetary Authority will expedite the approval process for stablecoin-related licenses, providing a clearer regulatory environment for the market. Furthermore, Hong Kong government officials also hold an optimistic view on the prospects of tokenization. For instance, the Secretary for Financial Services and the Treasury of the Hong Kong SAR Government, Xu Zhengyu, further stated that Hong Kong not only hopes to promote the tokenization of assets such as gold but is also committed to integrating the real economy through digital finance.

Hong Kong also supports blockchain technology at the technical level. For instance, according to news from the ThreeDAO public account, Dr. Xiao Feng, founder of Wanxiang Blockchain, once suggested to Vitalik, the founder of Ethereum, during a private conversation that the Ethereum Foundation should establish an office in Hong Kong. Dr. Xiao pointed out that blockchain developers are mainly concentrated in the English-speaking and Chinese-speaking worlds, and losing the Chinese market means losing important global developer resources. The technical departments, government agencies, and developer communities in China hold a respectful attitude towards Ethereum technology and suggest that the foundation should not distance itself from the Chinese market.

Now, with the participation of several leading enterprises mentioned earlier, it may bring confidence to more Hong Kong enterprises that are in a wait-and-see state, providing them with motivation for reference and advancement.

In summary, as more and more global institutions accelerate the tokenization of financial assets, the development space for the RWA track is being further opened up, presenting important policy opportunities and development windows for Hong Kong. Therefore, in the face of increasingly clear policy directions and continuously maturing technological paths, Hong Kong should appropriately release innovative experimental space based on ensuring financial stability and compliance, encouraging more traditional institutions to move from observation to practice, guiding more traditional financial funds to enter the market, and accelerating the localized development of the RWA ecosystem and its integration with the global market.