Hong Kong is rapidly building its digital finance market through real-world asset (RWA) tokenization, exchange trading funds (ETFs), and new Stablecoin rules. However, sudden costs and compliance demands continue to hinder smaller issuers.
On August 26, the trading volume of the city’s six virtual asset ETFs reached $56.4 million ($7.2 million). The numbers show stable investor interest despite wider volatility.
RWA tokenization faces sudden entry costs
The RWA project promises to open up global liquidity and increase access to investors.
However, the costs remain outrageous. Issuing a single tokenized product could exceed 6 million RMB ($820,000), according to Panews.
Securities firm fees earn the largest share, while blockchain integration and legal compliance add additional costs. Funding, cross-border approval, and additional fees for promotion increase the total burden.
Breakdown of Hong Kong’s RWA tokenization Issuance Cost
Beyond one-time issuance, businesses must also secure licenses. While Hong Kong’s major financial licenses cost over RMB1.5 million, Virtual Asset Service Provider (VASP) licenses can reach tens of millions.
Advocates argue that tokenization improves efficiency compared to traditional securitization. However, relying on Oracle, gaps in professional expertise and the need for costly intermediaries makes adoption difficult.
Liquid assets such as Money Market Funds and the US Treasury are considered the most practical candidates for tokenization. In contrast, illiquid infrastructure projects remain difficult to expand.
Hong Kong ETFS shows investors’ appetite
ETF trading patterns reveal a clear preference for Ethereum-based products. China’s Asset Management Ethereum ETF won Hong Kong Dollar on August 26th.
Its Bitcoin products and rival publishers’ products have reduced harvest and Bosella products.
Overall, Ethereum-related ETFs accounted for almost two-thirds of their activity. Analysts say this reflects global trends. Ethereum supports distributed applications and offers opportunities beyond price speculation.
Ruihe enters Bitcoin mining
In a company’s move, Hong Kong-listed Ruihe Data Technology Holdings has announced plans to expand to Bitcoin through its cloud mining business. The company has signed an outsourcing agreement with mining hardware manufacturer Bitmain to perform the operations.
“Bitcoin mining as an independent business segment provides the group with opportunities for digital assets and emerging technologies,” the Ruihe board said in its submission.
The company said outsourcing allows it to avoid heavy capital expenditures while maintaining flexibility. Remuneration will be distributed to Ruihe under the contract.
Stablecoin rules create a new framework
Change Policy Add another layer to your Hong Kong digital finance drive. On August 1st, the city enacted the Stubcoin Ordinance and established licensing requirements for issuers.
Local commentary urged the government to align its strategy with China’s 15th five-year plan, and position Hong Kong as a stable issuance hub. The next step is a white paper on financial development.
Industry leaders see opportunities. JD.com CEO Richard Liu said recently:
“Through the Stablecoin license, we can achieve currency exchanges between global companies, reduce global cross-border payment costs by 90%, and improve efficiency within 10 seconds.”
Together, tokenization, ETFs, and Stablecoin Regulation highlight Hong Kong’s ambitions to secure a leading role in the global digital asset market.
Why Hong Kong is promoting RWA tokenization despite the first appearance in Beincrypto.
