On August 27th, Binance founder CZ made a somewhat unexpected visit to the University of Hong Kong for a conversation with Professor Lin Chen. In the cryptocurrency world, founders rarely seem to need to cultivate their image by sharing macro insights, so roundtable discussions and forums often seem hollow. But CZ came well prepared this time, sharing many valuable perspectives. At the end of the conversation, CZ gently put down the microphone and said, "I once thought I'd never return to the Chinese-speaking world. Today in Hong Kong, I know this story has only just begun."
As the story of CZ and Hong Kong began anew, the wheels of the crypto world were quietly turning. In 2025, the crypto industry underwent significant changes. Over the past year, ETFs have gradually become the infrastructure of crypto finance. Once considered limited in scope, RWAs, stablecoins that existed more as infrastructure, and the DAT sector, originally cultivated solely by MicroStrategy, have exploded this year, attracting the attention of both Web3 and the financial community, becoming the "three pillars" guiding the industry's development.
The data bears witness. By the second quarter of 2025, the total market capitalization of tokenized RWA projects has exceeded $25 billion, a 245-fold increase in five years. By 2025, DAT companies will hold over 790,000 Bitcoins (approximately 4% of the circulating supply) and 1.3 million Ethereums (approximately 1% of the circulating supply), with a total market capitalization exceeding $100 billion. By June 2025, the total size of the stablecoin market will be approximately $255 billion. Meanwhile, national governments are also stepping in, with the US Congress, the European Central Bank, the Hong Kong Monetary Authority, and the Securities and Futures Commission (SFC) all enacting regulatory measures.
Driven by these three forces, Hong Kong, which was a little slow in its "wild growth" era, has finally returned to the spotlight and stood at the crossroads of its destiny.
DAT: A natural testing ground for the Hong Kong stock market
DATs (cryptoasset treasury advisors) are a new breed in the capital market. They equitize the ability to hold and increase positions, allowing ordinary investors and institutional investors to indirectly own Bitcoin and Ethereum. For the past few years, MicroStrategy has been a lone player in the US stock market, becoming almost synonymous with DATs. However, by 2025, this model has spread globally: Metaplanet trades at a high premium on the Tokyo Stock Exchange, and companies like SharpLink and Semler have also established themselves.
However, the differences between US and Hong Kong stocks mean that Hong Kong may become a testing ground for another type of DAT.
• Differences in market capitalization and narrative: US stock investors tend to prioritize a company's fundamentals and ability to sustain operations, while the Hong Kong stock market has long been home to more theme-driven companies. DATs, inherently a product of narrative and asset synergy, are naturally suited for incubation in the Hong Kong stock market.
• Differences in corporate structure: In Asia, many technology companies, smaller industrial enterprises with relatively small market capitalizations, and even traditional industry companies are exploring how to enter the crypto world by holding or issuing cryptocurrencies. While these companies face high barriers to listing and substantial compliance costs in the US, they find it easier to find a foothold in the Hong Kong market.
• Differences in investor structure: Hong Kong stock investors include both local funds and southbound funds from mainland China, while also attracting overseas capital. For alternative asset classes like DATs, investors are more receptive to short-term premiums and cyclical opportunities, rather than necessarily demanding stable cash flow.
This means the Hong Kong stock market could become a natural window for Asian companies to transition to DATs. Unlike the dominant US stock market, where giants dominate, a group of smaller DATs with diverse strategies could emerge: some focusing on a single asset, passively holding it for the long term; others pursuing active trading to maximize cyclical returns; and even some considering ecosystem investments, allocating some funds to familiar on-chain sectors.
This diversification is gradually emerging. Recently, HashKey announced the launch of its DAT strategy, establishing a multi-currency treasury fund focused on long-term allocation to core assets such as Bitcoin and Ethereum. It also partnered with Huajian Medical, helping the company become the first in the Hong Kong stock market to include Ethereum in its reserves and establish a compliant holding and disclosure system. These examples demonstrate that Hong Kong is not only attractive to companies experimenting with the DAT model, but also possesses the institutional and infrastructure support to enable DAT companies with diverse strategies to find a home.
Stablecoins: From Sovereign Strategy to Opportunities for Hong Kong
In the global financial landscape, stablecoins are quietly ascending from a market "safe haven" to a strategic reserve tool for national governments. In the past, the US dollar's global influence relied primarily on Swift, offshore dollar markets, and US Treasuries. Now, dollar-denominated stablecoins like Tether and USDC are joining this group. These tokens are backed by real US dollar assets, particularly US Treasuries, allowing overseas investors to hold US dollar assets in digital form without having direct access to the US financial system. Stablecoins have become a new gateway to the globalization of the US dollar, playing an increasingly important role in global currency competition.
For this reason, stablecoins are no longer just a supporting role in exchanges, but are gradually becoming a strategic reserve that sovereign states must take seriously. The GENIUS Act, passed by the United States this year, codifies the legality of stablecoins into law and clearly distinguishes them from central bank digital currencies (CBDCs). The underlying logic is that central bank currencies are not flexible in cross-border circulation, while market-based stablecoins can maximize the international influence of the US dollar.
Against this backdrop, Hong Kong stands at the intersection of politics and institutions. On the one hand, it is the most open financial center within the Chinese system, boasting a mature capital market and an institutional environment that allows for the free flow of foreign exchange. On the other hand, its close integration with the global financial system makes it a suitable testing ground for the institutionalization and regulatory compliance of stablecoins. This means Hong Kong has the opportunity to position itself as an international clearance hub for stablecoins: connecting with dollar-pegged stablecoins while also incubating local fiat stablecoin products.
But opportunities also present challenges. Hong Kong's financial regulation has traditionally emphasized risk control, leading to a stronger emphasis on know-your-customer (KYC), custody, and information disclosure in its draft stablecoin regulations. This creates a tension with the market's demand for convenient circulation. Overly strict regulations could undermine innovation, while overly lax regulations could hinder the credibility of an international financial center. Striking a balance between risk and innovation will determine whether Hong Kong can secure a place in the future stablecoin landscape.
Ultimately, the rise of stablecoins is an inevitable consequence of changes in the monetary system. As a financial hub connecting China and the United States, and Asia and the world, Hong Kong not only bears challenges in this process, but is also a potential amplifier of opportunities.
RWA: Price Discovery and Hong Kong’s Unique Role
The tokenization of real-world assets has become a focal point in the capital markets in recent years. Stablecoins, using US Treasury bonds, have demonstrated the feasibility of on-chain asset transfers. Meanwhile, a wider range of financial products—from short-term bonds and fund shares to real estate and commodities—are gradually entering the blockchain testing ground. The global RWA market capitalization has grown hundreds of times in five years, reflecting the search among institutions and investors for a more efficient and transparent way to store assets.
The development of RWAs faces three key challenges. The first is liquidity. Many assets exhibit low volatility in traditional markets, and trading depth is insufficient after being put on-chain, making it difficult to attract sufficient buying and selling power. The second is regulatory complexity. Different jurisdictions have vastly different definitions of securities, commodities, and tokens, and cross-border operations often face multiple compliance pressures. The third is product mechanics. Ideally, tokenized assets should be closely linked to real-world assets, but currently some products suffer from price differentials that are unable to converge, making arbitrage strategies difficult to implement.
Against this backdrop, Hong Kong holds unique market value. It connects mainland capital, international investors, and local funds, encompassing a diverse range of products, including stocks, bonds, commodities, and funds. This market structure provides Hong Kong with a natural validation function: with diverse assets and market participants, it can test whether tokenized products truly possess price discovery capabilities. Through unified trading regulations, Hong Kong can provide a more transparent and credible pricing environment for RWAs, thereby reducing the efficiency losses associated with a fragmented market.
This progress requires reliable market infrastructure. Licensed exchanges and public blockchains play a crucial role here. For example, HashKey is promoting a tokenized money market fund pilot program through a compliant exchange while also exploring compliant and secure ETF custody solutions using its own public blockchain. Together, these two initiatives provide effective market support. This parallel approach provides a practical example for bringing different types of assets onto blockchains.
For Hong Kong, RWAs offer a showcase for its competitiveness as a financial center. Its extensive cross-border investment and financing experience, mature financial infrastructure, and evolving regulatory framework make Hong Kong a key venue for validating and promoting RWAs. If this positioning is effectively implemented, Hong Kong will not only establish a leading position in the Asia-Pacific region but also potentially have a far-reaching impact on the global tokenization trend.
Summarize
“Today in Hong Kong, the story has just begun.” This statement carries the connotation of a wanderer returning home, and also reflects the real changes taking place in Hong Kong’s Web3 ecosystem.
Hong Kong is increasingly becoming a customs clearance hub, channeling offshore US dollar stablecoins, foreign companies' DAT and RWA holdings, and Asian capital flows into a single matching pool. Institutions and markets are intertwined here, forming new mechanisms for price discovery and capital circulation. The future landscape may be characterized by the parallel development of diverse infrastructures. Licensed platforms like HashKey are building bridges, pursuing breakthroughs in custody, matching, tokenized products, and enterprise services. Their combined impact will determine whether Hong Kong can truly fulfill its role as a customs clearance hub and, in turn, write a new chapter in the global financial landscape.
