Tokenisation a 'defining trend' for Web3 in Hong Kong as city hosts major Consensus event

Hong Kong is intensifying its focus on tokenisation and stablecoins to bolster its Web3 industry, the financial services secretary said ahead of a major international blockchain conference, as the city's virtual asset push faces increased competition from the US.

Tokenisation is one of the "defining trends" and a "profoundly transformative" development that could reshape traditional financial markets, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said in a keynote speech on Tuesday at Consensus Hong Kong 2025.

Consensus, organised by US crypto news outlet CoinDesk, is one of the industry's biggest conferences. The organiser added Hong Kong as a location this year in its first major expansion since CoinDesk was acquired by the cryptocurrency exchange Bullish in November 2023. The main Consensus Hong Kong event kicks off on Wednesday.

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Tokenisation refers to the process of creating tradeable tokens on a blockchain that represent ownership of real-world assets.

Since the Securities and Futures Commission (SFC) published circulars in November 2023 outlining requirements for tokenised investment products, Hong Kong companies have jumped on the trend, touting the flexibility and accessibility of tokenised products.

HSBC Gold Token is the first such retail product to be issued by a bank in Hong Kong, according to HSBC, as the government pushes for the issuance of more tokenised assets. Photo: HSBC alt=HSBC Gold Token is the first such retail product to be issued by a bank in Hong Kong, according to HSBC, as the government pushes for the issuance of more tokenised assets. Photo: HSBC>

HSBC in March last year launched a tokenised gold product called HSBC Gold Token for its retail customers in Hong Kong.

Last week, the Hong Kong arm of one of China's largest fund houses, China Asset Management (Hong Kong), said that it received approval from the SFC to offer a tokenised money market fund in the city that will also be available to retail investors. The fund will launch by the end of February, the company said.

In his Tuesday speech, Hui also highlighted Hong Kong's commitment to developing fiat-referenced stablecoins, an increasingly important focus of the industry. Stablecoins can address issues in cross-border payments, international trade, and digital commerce, he said.