TechFlow news: Yang Wang, Vice President of the Hong Kong University of Science and Technology and Chief Scientific Advisor of the Hong Kong Web3.0 Association, together with Hao-Kang Chu, PhD candidate in Fintech at The Hong Kong Polytechnic University and founding member of the RWA and Stablecoin Working Group at the Hong Kong Web3.0 Association, have proposed policy recommendations suggesting that Hong Kong should next focus on deep integration between the virtual world and real-world assets. They advocate fully leveraging blockchain technology to build a robust Web3 ecosystem anchored by a Hong Kong dollar-backed stablecoin, with a strategic emphasis on digitizing and tokenizing real-world assets (RWA)—such as bonds, private credit, trade finance, real estate, carbon credits, and precious metals. Additionally, to establish a sound regulatory environment for RWA, they recommend adopting Chu's previously proposed "RWA 2+4" framework as a starting point for feasibility studies. This methodology centers on two types of tokens (security tokens and utility tokens) and four core components (legal foundation, financial framework, technical tools, and data-driven mechanisms), aiming to identify opportunities amid challenges and promote the healthy development of RWA.
To advance RWA tokenization in Hong Kong, it is recommended to first establish a compliant and robust infrastructure, with blockchain technology being the most critical component. Organizations such as the Hong Kong Web3.0 Association have already proposed creating a dedicated public blockchain for RWA in Hong Kong, incorporating built-in KYC mechanisms. Furthermore, the authors strongly reiterate the call for Hong Kong to launch a unified stablecoin under comprehensive strategic guidance, to be issued by authorized institutions—including government bodies, banks, insurance companies, funds, and other financial institutions—alongside an appropriate profit-sharing mechanism.
