Hong Kong Finance Secretary Paul Chan has vigorously defended the city’s regulatory approach to digital assets, emphasizing its “same activity, same risk, same regulation” framework during discussions at the World Economic Forum in Davos. Speaking at a private workshop in Switzerland, Chan highlighted the increasing convergence of finance and technology, underscoring the necessity for a balanced regulatory strategy.
Digital assets should serve the real economy. But we must also build strong guardrails to address risks to financial stability, market integrity and investor protection.
Chan elaborated on Hong Kong's guiding principle for digital assets, stating that the “same activity, same risk, same regulation” doctrine dictates how the sector is governed. This principle ensures that digital asset businesses are regulated based on the inherent risks of their operations, irrespective of the specific technologies they employ.
To support this framework, Hong Kong has implemented several key measures. These include a licensing regime specifically for virtual asset trading platforms and ongoing pilot programs by the Hong Kong Monetary Authority (HKMA) that are testing transactions involving tokenized deposits and other digital assets.
Looking ahead, Chan indicated that stablecoin licenses are anticipated to be issued within the first quarter. Furthermore, Hong Kong has a notable track record in issuing tokenized green bonds, which are conventional debt instruments issued on-chain to finance environmental initiatives. Since 2023, the city has issued three such batches, collectively totaling $2.1 billion.
Hong Kong's Growing Focus on Asset Tokenization
Hong Kong, a significant global crypto hub and a special administrative region of China, has increasingly positioned asset tokenization as a primary practical application for digital assets. This strategic focus aims to leverage blockchain technology for tangible economic benefits.
A prominent example of this trend occurred in October, when a Hong Kong-based subsidiary of China Merchants Bank (CMB) successfully tokenized a $3.8 billion US dollar money market fund. This fund was issued onchain via CMB International Asset Management, demonstrating the capabilities of the city's burgeoning tokenization ecosystem.
The Hong Kong Monetary Authority (HKMA) recently unveiled its Fintech 2030 strategy, which will place a strong emphasis on data, artificial intelligence, resilience, and tokenization. This strategy operates under a framework known as DART and encompasses over 40 initiatives designed to expand Hong Kong's tokenization ecosystem over the next five years.
In a significant cross-border development in November 2025, Brazilian digital bank Banco Inter collaborated with Chainlink, the Central Bank of Brazil, and the Hong Kong Monetary Authority on a blockchain-based trade finance pilot. This initiative successfully tested cross-border settlement between Brazil and Hong Kong, two major trading partners and members of the BRICS bloc.
