The digital economy is undergoing rapid transformation, with Hong Kong positioning itself as a leading hub for digital assets and Web3 innovation. At the recently held Hong Kong Digital Finance Awards 2025, Financial Secretary of the Hong Kong Special Administrative Region, Mr. Christopher Hui (Xu Zhengyu), announced key developments in the region’s digital asset regulatory framework. Starting in August, Hong Kong will officially implement a licensing regime for stablecoin issuers—an important milestone in building a trustworthy and sustainable digital asset ecosystem.
Backed by the newly released Hong Kong Digital Asset Development Policy Statement 2.0, the government has introduced the "LEAP" framework—a strategic roadmap encompassing Regulatory Enhancement, Product Expansion, Application Scenario Advancement, and Talent Development. This comprehensive approach signals Hong Kong’s commitment to becoming a global leader in responsible digital finance innovation.
👉 Discover how regulatory clarity is fueling the next wave of digital finance growth.
Web3 Revolution: Empowering Data Ownership and Digital Identity
Web3 technology is redefining the internet by returning data sovereignty to users and enabling decentralized financial models. According to market research, the global blockchain market is projected to surpass $1.5 trillion by 2030, driven by innovations such as asset tokenization, decentralized identity (DID), and secure digital wallets.
One of the most impactful shifts is in the cultural and entertainment sectors, where platforms are adopting Web3-based identity systems to break free from centralized tech giants’ data monopolies. These DID frameworks allow users to control their personal information across platforms without relying on third parties.
In parallel, new hardware solutions like BSIM (Blockchain SIM)—which integrates crypto wallets directly into mobile SIM cards—are simplifying user access while enhancing security. This seamless fusion of telecom infrastructure and blockchain technology lowers entry barriers for mainstream adoption.
Moreover, hybrid consensus mechanisms combining Proof-of-Work (PoW) and Proof-of-Stake (PoS) are being deployed to strengthen network resilience against malicious actors. These advancements ensure greater scalability and trust in public blockchains—critical for enterprise-grade applications.
Real-World Asset Tokenization: Unlocking New Investment Avenues
Tokenization of real-world assets (RWA) is emerging as a game-changer in finance. By converting physical assets like real estate into digital tokens on a blockchain, investors gain access to previously illiquid markets with fractional ownership options.
For example, property tokenization allows individuals to invest in high-value commercial or residential properties with minimal capital. These tokens can be traded 24/7 on compliant platforms, offering transparency, faster settlement, and potential for stable returns—especially appealing in volatile macroeconomic conditions.
This trend aligns closely with institutional interest in blockchain-based settlement systems that reduce counterparty risk and operational costs in cross-border trade.
Conflux: Bridging China’s Blockchain Innovation with Global Markets
Originating from a team of young scientists at Tsinghua University, Conflux stands out as China’s first compliant public blockchain. Leveraging its unique Tree-Graph consensus structure, Conflux achieves high throughput without sacrificing decentralization—making it ideal for large-scale financial applications.
With Hong Kong serving as its international gateway, Conflux is actively involved in shaping global blockchain standards while fostering integration between Web3 and traditional economies. The network partners with platforms like AnchorX and TradeGo to deliver stablecoin-powered cross-border payment solutions and digital trade services tailored for Belt and Road Initiative corridors.
These innovations significantly reduce transaction costs and settlement times for international trade, supporting broader goals such as RMB internationalization and inclusive financial connectivity across emerging markets.
Market Momentum: Crypto Assets Regain Traction
After two days of market correction, the cryptocurrency sector rebounded strongly, with major assets posting gains between 2% and 9%. Notably, Bitcoin (BTC) once again breached the $110,000 mark—its fourth time reaching this psychological level—registering a 24-hour increase of 2.34%.
Meanwhile, Ethereum (ETH) surged by 6.52%, surpassing the $2,600 threshold as investor confidence returns amid growing institutional participation.
Spot Bitcoin ETFs also saw strong inflows, with a total net inflow of $408 million on July 2**. The Fidelity Bitcoin ETF (**FBTC**) led the pack with a single-day inflow of **$184 million, bringing its cumulative total to an impressive $11.97 billion.
These figures reflect deepening institutional trust in regulated crypto investment vehicles—a trend expected to accelerate under clearer frameworks like Hong Kong’s upcoming stablecoin licensing regime.
Corporate Moves: Dmall Advances Into Stablecoin Space
Dmall (stock code: 2586), a major player in digital retail, experienced a surge in share price—rising as much as 89.8% intraday before closing up 23.64% at HK$11.14. The rally followed news that the company is preparing to apply for a Hong Kong stablecoin license.
According to Tommy Tang, Vice President and CFO of Dmall, the firm has already allocated part of its treasury to Bitcoin and is actively recruiting talent to advance its Web3 strategy. He emphasized that integrating stablecoins into their payment infrastructure could dramatically improve cross-border transaction efficiency, reduce costs, and enhance customer experience—aligning with the broader trend of crypto adoption in global commerce.
👉 Learn how businesses are leveraging blockchain to transform cross-border payments.
Compliance and Ecosystem Collaboration: Sumsub x DKM ECO
Compliance remains a cornerstone of sustainable growth in fintech and Web3. To address evolving regulatory demands, verification platform Sumsub partnered with data solutions provider DKM ECO to launch the Sumsub APAC Roadshow: Comply to Fortify 2025 in Hong Kong.
Their strategic collaboration offers customized compliance guidance and integrated identity verification tools tailored for financial institutions across Hong Kong, mainland China, Singapore, and the Philippines. By streamlining KYC/AML processes through AI-powered automation, they help organizations build more resilient and secure digital ecosystems.
Ripple Expands Into Traditional Finance
In a significant move toward bridging crypto and traditional banking, Ripple has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) for a national banking charter, along with a request for access to a Federal Reserve master account. If approved, this would enable Ripple to operate as a fully regulated U.S. bank—further cementing its role in compliant cross-border payments using blockchain technology.
FAQ Section
Q: What is Hong Kong’s LEAP framework?
A: The LEAP framework stands for Regulatory Enhancement, Product Expansion, Application Scenario Advancement, and Talent Development. It's part of Hong Kong’s updated digital asset policy aimed at building a robust and trustworthy Web3 ecosystem.
Q: When will Hong Kong’s stablecoin licensing regime take effect?
A: The licensing system for stablecoin issuers is set to launch in August, marking a major step in regulating digital currencies within a clear legal framework.
Q: How does asset tokenization benefit investors?
A: Tokenization allows fractional ownership of high-value assets like real estate, increasing liquidity and accessibility while enabling transparent, 24/7 trading on blockchain platforms.
Q: What makes Conflux different from other blockchains?
A: Conflux uses a Tree-Graph consensus mechanism that balances high transaction throughput with strong decentralization—ideal for enterprise use cases in cross-border finance and trade digitization.
Q: Why are spot Bitcoin ETFs important?
A: Spot Bitcoin ETFs allow institutional and retail investors to gain exposure to Bitcoin without holding the asset directly, promoting wider adoption through regulated financial channels.
Q: Is Hong Kong becoming a Web3 hub?
A: Yes. With proactive regulation, government support, talent development initiatives, and strategic infrastructure projects like Conflux, Hong Kong is rapidly emerging as Asia’s premier Web3 innovation center.
👉 Explore how Hong Kong’s digital economy is setting new standards for global Web3 adoption.