Hong Kong Unveils Comprehensive Stablecoin Licensing Framework And Tokenized Bond Plans

Cointelegraph reports that Hong Kong released its latest digital asset policy statement on Thursday, introducing the LEAP framework targeting legal clarity, ecosystem expansion, real-world applications and talent development. The government will implement a licensing regime for stablecoin issuers starting August 1, while simultaneously launching plans to regularize tokenized government bonds and promote tokenized ETFs through clarified stamp duty treatment.

The Securities and Futures Commission will oversee licensing for digital asset dealing and custody providers. The Financial Services and Treasury Bureau and Hong Kong Monetary Authority will lead a legal review supporting real-world asset tokenization. Financial Secretary Paul Chan stated the framework showcases practical tokenization use and aims to build a flourishing digital asset ecosystem integrating the real economy with social life.

Global Stablecoin Regulation Momentum Accelerates

Hong Kong's move aligns with worldwide regulatory developments transforming the stablecoin landscape. S&P Global reports the global stablecoin market cap exceeded $200 billion as of early 2025, prompting comprehensive regulatory frameworks across major jurisdictions. The EU's MiCA regulation became fully effective, while Reuters confirms the US Senate passed stablecoin legislation requiring tokens to be backed by liquid assets with monthly reserve disclosures.

Global Ledger analysis shows stablecoins processed $8.5 trillion in transactions across 1.1 billion transfers during the second quarter of 2024, more than double Visa's volume. The stablecoin market currently stands at $223 billion, with USDT holding $139.5 billion. Singapore and the UAE have implemented similar frameworks, with the UAE approving its first dirham-pegged stablecoin AE Coin in January 2025.

Tokenization Market Experiences Rapid Expansion

Hong Kong's tokenization push capitalizes on explosive real-world asset growth. Cointelegraph data shows tokenized real-world assets surpassed $15.2 billion by end-2024, excluding stablecoins. The practice gains institutional adoption for real estate, commodities, and carbon credits. Regulatory clarity, interoperability solutions, and fractional ownership capabilities drive mainstream acceptance.

CoinDesk predicts 2025 will see tokenization reach $500 billion, transitioning into the pragmatists adoption phase. BlackRock's fund tokenization and banking sector graduations from proof-of-concept to production use cases accelerate growth. Real estate provides over $30 billion in value through tokenizing home equity lines of credit, alternative financing, and collateralized loans.

The government plans to incentivize tokenization across metals and renewable energy assets, demonstrating technology versatility for precious metals and solar panels. Public consultations on new licensing regimes will launch soon, building on May's Legislative Council passage of the Stablecoin Bill.

Asia Emerges As Leading Crypto Regulatory Hub

Hong Kong's framework positions Asia as the global crypto regulation leader. BeInCrypto reports Singapore granted 30 companies Major Payment Institution licenses for digital payment tokens, while Hong Kong issued 10 Virtual Asset Trading Platform licenses. Vietnam requests urgent finalization of virtual asset pilot regulations before March 2025, and Thailand approved USDT for domestic trading with updated regulations effective March 16.

Crystal Intelligence analysis from PwC's Global Crypto Regulation Report shows Asian financial centers like Hong Kong and Singapore lead with improved crypto regulations promoting growth while reducing risks. Both implement crypto exchange licensing regimes and stablecoin frameworks ensuring consumer protection without limiting innovation.

The strategic positioning creates advantages for institutional participation and cross-border transactions. Hong Kong's free-trade agreements with ASEAN nations provide gateway access to high-growth markets, particularly Vietnam's digital economy with projected 30-40% crypto adoption rates in 2025. This regulatory leadership could help Asia surpass the US and Europe as the global cryptocurrency hub.

Earlier this month, Hong Kong authorities announced preparations for digital asset derivatives trading for professional investors, following approvals for spot crypto ETFs, futures products, and staking services. The city previously approved HashKey for crypto staking services in April, reinforcing its position as a leading digital finance hub competing with Singapore's comprehensive regulatory approach.

Related Reading on BTC Peers

Global Bitcoin Policy Index provides readers with comprehensive analysis of Bitcoin policy developments across major jurisdictions. This resource offers detailed country-by-country regulatory assessments, policy timeline tracking, and comparative frameworks helping investors understand how different governments approach Bitcoin regulation. Readers will gain insights into regulatory trends, compliance requirements, and strategic considerations for navigating the evolving global Bitcoin policy landscape.