KEY FACTS: Hong Kong’s "Policy Statement 2.0," unveiled on June 26, 2025, introduces the LEAP framework focusing on stablecoin licensing and real-world asset (RWA) tokenization. Effective August 1, 2025, the Stablecoin Ordinance will regulate fiat-pegged stablecoin issuers under the Hong Kong Monetary Authority, with interest from major players like Ant Group and JD.com. The framework promotes tokenization of assets like government bonds, ETFs, and commodities, with a 380% market growth to $24 billion globally.
Source: Government of the Hong Kong
Hong Kong Unveils LEAP Framework for Stablecoin Licensing and RWA Tokenization
The government of Hong Kong has released its highly anticipated "Policy Statement 2.0" on the development of digital assets. Unveiled on June 26, 2025, this comprehensive framework, dubbed "LEAP," places stablecoin regulation and the tokenization of real-world assets (RWAs) at the heart of the city’s strategy to become a preeminent crypto and fintech hub. Building on its 2022 policy, Hong Kong’s latest blueprint introduces a structured approach to fostering innovation while ensuring robust regulatory oversight, aiming to integrate digital assets into the real economy and enhance the city’s competitive edge in the global financial landscape.
The cornerstone of Hong Kong’s updated digital asset strategy is the LEAP framework, an acronym that stands for Legal and regulatory streamlining, Expanding tokenized products, Advancing use cases, and People and partnership development. This multifaceted initiative is designed to balance innovation with investor protection, fostering a trusted and vibrant digital asset ecosystem. The framework builds on Hong Kong’s earlier efforts, which began in 2022 when the city reopened crypto trading to retail investors and signaled its intent to lead in blockchain-based finance.
A key component of the LEAP framework is the introduction of a licensing regime for stablecoin issuers, set to take effect on August 1, 2025. This follows the passage of the Stablecoin Ordinance in May 2025, which established a regulatory framework for fiat-referenced stablecoin issuers. The ordinance adopts a “same activity, same risk, same regulation” principle, aligning with international standards set by organizations like the Financial Stability Board (FSB) under the G20. The Hong Kong Monetary Authority (HKMA) will oversee the licensing process, ensuring that only issuers meeting stringent criteria for financial stability, anti-money laundering measures, and investor protection are granted approval. Financial Secretary Paul Chan emphasized the transformative potential of the new framework. In his words:
“Policy Statement 2.0 showcases the practical use of tokenization and aims to build a more flourishing digital asset ecosystem that integrates the real economy with social life.”
Chan’s remarks show Hong Kong’s ambition to not only regulate digital assets but also promote their real-world applications, positioning the city as a pioneer in blockchain technology adoption.
The upcoming stablecoin licensing regime is a crucial element of Hong Kong’s strategy. Starting August 1, 2025, issuers of fiat-pegged stablecoins will be able to apply for licenses, a move that has already attracted interest from major players like Ant Group and JD.com. The HKMA has built flexibility into the framework, allowing regulators to designate additional stablecoin issuers, activities, or specific tokens as regulated without requiring new legislation, which is a critical feature in the fast-evolving digital asset space.
This regulatory clarity is expected to catalyze the adoption of stablecoins in practical financial applications. The government is actively encouraging market participants to propose ways to integrate licensed stablecoins into public sector processes, demonstrating their utility in real-world scenarios. For instance, authorities are exploring how stablecoins can complement central bank digital currencies (CBDCs) and bank-issued tokens, though the exact interplay between these instruments remains under review.
Hong Kong’s proactive approach to stablecoin regulation gives it a first-mover advantage in Asia, particularly as other major financial hubs, such as the United States, continue to grapple with pending Congressional proposals on stablecoin oversight. The establishment of clear standards and guardrails will help Hong Kong to avoid the pitfalls of unregulated “crypto casinos” while fostering responsible innovation. The success of USDC issuer Circle’s public listing in the United States has further underscored the potential for stablecoins to integrate with traditional financial systems, a trend Hong Kong is keen to emulate.
In addition to stablecoin regulation, Policy Statement 2.0 places a strong emphasis on the tokenization of real-world assets, a rapidly growing sector that has seen global market value surge by 380% over the past three years to $24 billion as of June 2025. The government plans to regularize the issuance of tokenized government bonds and incentivize the tokenization of assets such as exchange-traded funds (ETFs), gold, precious metals, non-ferrous metals, and renewable energy infrastructure like solar panels. By clarifying stamp duty treatment for tokenized ETFs and supporting their secondary market trading on licensed platforms, Hong Kong aims to enhance liquidity and accessibility for investors.
The Securities and Futures Commission (SFC) will play a central role in overseeing licensing for digital asset dealing and custody providers, as well as crypto exchanges and stablecoin issuers. Meanwhile, the Financial Services and the Treasury Bureau (FSTB) and the HKMA will conduct a legal review to facilitate the tokenization of RWAs and financial instruments. This review will address regulatory hurdles and ensure that tokenized assets can be seamlessly integrated into primary and secondary markets.
Hong Kong’s focus on tokenization extends beyond financial instruments to physical commodities. The government is exploring the tokenization of assets like gold and warehouse receipts for metals, though it acknowledges the need for careful monitoring due to historical risks of fraud in these sectors. Initiatives like Project Ensemble, a sandbox for tokenization and tokenized deposits, and the development of an Ensemble Infrastructure for interbank settlement of tokenized deposits highlight Hong Kong’s commitment to building a robust digital asset infrastructure.
The LEAP framework also prioritizes ecosystem expansion and talent development. Hong Kong’s tech hub, Cyberport, will incubate blockchain-based projects and provide funding schemes to support scalable, high-impact digital asset use cases. The government is also fostering partnerships among regulators, enforcement agencies, and technology providers to ensure seamless monitoring and regulation across platforms and products. Public consultations on the new licensing regimes are set to begin shortly, allowing market participants to provide input and shape the regulatory landscape.
Hong Kong’s ambitions extend to integrating digital assets with traditional finance. Recent regulatory approvals for spot crypto ETFs, futures products, and staking services, including HashKey’s authorization to offer staking in April 2025, demonstrate the city’s progressive stance. The SFC has also proposed allowing crypto derivatives trading for professional investors, further diversifying the range of crypto-related services available in the city. These initiatives complement the broader goal of creating a diversified, regulated ecosystem that bridges blockchain technology with traditional financial systems.
Hong Kong’s Policy Statement 2.0 is a bold step toward cementing its role as Asia’s leading digital asset hub. Hong Kong is laying the groundwork for a trusted and innovative financial ecosystem by prioritizing stablecoin licensing, RWA tokenization, and regulatory clarity. The LEAP framework’s focus on legal streamlining, ecosystem expansion, real-world applications, and talent development reflects a holistic approach to digital asset adoption.
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