Chinese Regulators Crack Down on Real-World Asset Businesses – What It Means for Tokenized Assets
China’s securities regulator is quietly urging home brokerages to halt their real-world asset (RWA) tokenization operations in Hong Kong, elevating purple flags over the fast-growing digital belongings sector being cultivated offshore.
Key Takeaways:
- China’s CSRC has urged native brokerages to pause RWA tokenization efforts in Hong Kong attributable to rising regulatory issues.
- Hong Kong continues to place itself as a digital asset hub, attracting dozens of companies amid a booming tokenization pattern.
- High-profile launches and inventory rallies replicate rising investor curiosity, regardless of Beijing’s cautious stance.
The China Securities Regulatory Commission (CSRC) has issued casual steerage to a minimum of two main brokerages, instructing them to pause RWA actions, Reuters reported, citing people familiar with the matter.
The transfer displays Beijing’s rising issues over threat publicity and speculative exercise linked to tokenized merchandise.
Hong Kong Emerges as Asia’s Digital Asset Hub Amid Tokenization Boom
The timing is notable. Over the previous yr, Hong Kong has positioned itself as Asia’s digital asset hub, with a rising variety of Chinese companies launching digital asset buying and selling platforms, yield-generating token merchandise, and tokenized bonds.
RWA tokenization refers back to the means of changing conventional belongings, like shares, bonds, and actual property, into digital tokens tradable on blockchain networks.
One supply stated the CSRC’s motion goals to make sure stronger threat administration and guarantee RWA choices are backed by legit, sustainable enterprise fashions.
The regulator has not issued a public directive, and it stays unclear how lengthy the present stance shall be maintained.
While China banned cryptocurrency buying and selling and mining in 2021, its state-backed establishments proceed to interact cautiously in blockchain innovation.
In distinction, Hong Kong has rolled out a stablecoin licensing regime and is conducting authorized evaluations on RWA tokenization via the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA).
Several high-profile launches have already taken place. GF Securities’ Hong Kong unit launched “GF Tokens” in June, backed by fiat currencies.
Meanwhile, China Merchants Bank International helped challenge a 500 million yuan digital bond for a Shenzhen-based entity final month. Both companies declined to remark on whether or not they acquired CSRC steerage.
Notably, 77 companies have proven curiosity in Hong Kong’s new licensing framework, in line with the HKMA.
Investor enthusiasm has fueled sharp rallies in associated shares, Guotai Junan International soared over 400% after gaining approval to supply crypto buying and selling, and Fosun International surged 28% after stablecoin-related conferences with Hong Kong officers.
Tokenized Real-World Assets May Unlock $400T TradFi Market
In a current analysis, Web3 digital property agency Animoca Brands stated that tokenization of RWAs might unlock a $400 trillion traditional finance market.
Animoca researchers Andrew Ho and Ming Ruan stated the worldwide market for personal credit score, treasury debt, commodities, shares, different funds, and bonds represents an enormous runway for progress.
“The estimated $400 trillion addressable TradFi market underscores the potential progress runway for RWA tokenization,” they wrote.
Meanwhile, in line with the 2025 Skynet RWA Security Report, the market for tokenized RWAs could grow to $16 trillion by 2030.
Tokenized U.S. Treasuries alone are projected to achieve $4.2 billion this yr, with short-term authorities bonds driving many of the exercise.
Institutional curiosity is accelerating, with main banks, asset managers, and blockchain-native companies exploring tokenization for yield and liquidity administration.
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