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RWA Tokenization in Hong Kong Paused Amid China’s Risk Management Concerns
Hong Kong RWA Tokenization – China’s securities regulator has reportedly instructed select brokerages to temporarily halt real-world asset (RWA) tokenization activities in Hong Kong, reflecting Beijing’s cautious stance as the city advances its digital asset initiatives.
What Is RWA Tokenization?
RWA tokenization converts traditional, regulated assets—such as bonds, equities, real estate, or funds—into blockchain-based tokens, opening a new frontier in institutional finance. Over the past year, several Chinese firms and brokerage subsidiaries have launched or announced tokenized products in Hong Kong, highlighting growing interest in the sector.
Regulatory Caution Over Expansion
According to Reuters, the China Securities Regulatory Commission (CSRC) provided informal guidance to at least two leading brokerages, urging them to refrain from offshore RWA activities. The move appears driven by risk management concerns, with officials emphasizing the need for “strong, legitimate businesses.”
Despite China’s strict crypto restrictions since 2021, experts see the guidance as a measured approach rather than outright opposition. Jakob Kronbichler, CEO of Clearpool, noted that regulators are carefully observing how tokenized assets interact with capital markets across borders, and Hong Kong’s licensing framework still provides a path for growth.
Ongoing Developments in Hong Kong
Hong Kong’s Securities and Futures Commission (SFC) has actively supported digital finance, unveiling a comprehensive roadmap for virtual assets and launching a stablecoin licensing regime with over 77 interested firms. Notable tokenization projects include GF Securities’ “GF tokens,” China Merchant Bank International’s $70 million digital bond, and Seazen Group’s Hong Kong tokenization institute.
Industry experts suggest that the pause may delay product launches and complicate compliance, but underlying demand for tokenized credit and payment solutions remains strong. Kronbichler emphasized that this step is about policy calibration rather than a shift in direction, leaving Hong Kong as a clear hub for institutions to continue building digital asset solutions.
