While financial companies around the world have pointed to asset tokenization as the next-generation growth engine, Hong Kong is taking this trend as a stepping stone to become a Web 3 hub. The ambition is to integrate traditional finance and Web3 by leveraging mainland China’s position as an international financial powerhouse and the abundant technological talent pool. Hong Kong government agencies are stepping up to host promising blockchain events, recruiting relevant talent, and accelerating the development of the Web3 industry.
━Attracting global blockchain events such as Smartcon and Consensus
The Chainlink SmartCon event held at the Kerry Hotel in Hong Kong for two days from the 30th to the 31st of last month is an example of the Hong Kong government’s will. King Leung, global general manager of financial services, fintech and sustainability at InvestHK (InvestHK), a Hong Kong government agency dedicated to attracting foreign investment, was impressed by Chainlink’s technology after attending SmartCon in Barcelona, Spain last year and is actively seeking to attract it to his country. It was announced that it had been promoted.
Chainlink is a project that provides an oracle middleware solution that links real-world data with blockchain. This means that a government agency has pointed out a specific blockchain project and expressed its support, which shows the Hong Kong government’s open attitude toward the blockchain industry. General Manager Leung added, “Following SmartCon, we have also invited Consensus, a global blockchain event, to Hong Kong next year.”
When asked about the background to Hong Kong’s active embrace of the blockchain industry, General Manager Leung said, “Global financial institutions such as Blackrock, JP Morgan, Franklin Templeton, and Fidelity are already experimenting with blockchain,” adding, “This will improve the efficiency of the financial industry.” “It is a reasonable trend,” he explained. The position is that financial innovation through blockchain is essential as more than 20% of Hong Kong’s gross domestic product (GDP) is in the financial services sector. Leung also expressed an optimistic outlook that the real-time assets (RWA) market will grow to hundreds of trillions of dollars. In fact, a joint report by Aptos Labs, BCG, and Invesco estimates that the potential demand for the tokenized fund market is approximately $290 billion (KRW 397.532 trillion), and the size of assets under management is expected to reach $600 billion (KRW 822.48 trillion) by 2030. It is expected to grow to billion won).
━Presenting a vision through Chinese talent pool and transparent regulations… ‘active cooperation’ with HSBC and others
At this SmartCon, the financial sector’s keen interest in asset tokenization was revealed. A large number of global financial companies, including Franklin Templeton, UBS, Fidelity, HSBC, Citi, and SBI, participated and continued heated discussions. “Millennials tend to trust virtual asset providers three times more than traditional financial institutions,” said Emma Peseninic, head of digital business development and partnerships for Asia Pacific and Japan at Fidelity International, pointing out that asset tokenization is an irreversible trend. emphasized.
Edgar Gehringer, Chief Operating Officer (COO) of HSBC Global Asset Management Asia Pacific, said that he was able to conduct various experiments through the blockchain regulatory sandbox directly proposed by Hong Kong regulators. As one of the results, HSBC launched a gold tokenization product for individual investors, which Leung described as “an innovative product that meets the needs of investors in Hong Kong and China who prefer gold, allowing spot exchange at any time without worrying about storage.” did it
Andrew Crawford, Vice President of Franklin Templeton’s Digital Asset Division, explained that brokerage fees can be significantly reduced thanks to the blockchain system that allows immediate transfer and verification of assets. He added that the company is also seeking new opportunities in developing markets such as Indonesia, Egypt, and Nigeria.
The response of domestic companies who have witnessed blockchain innovation is also encouraging. Park Ji-soo, CEO of Suho, a domestic blockchain technology startup that ran a booth at this Smart Con, said, “Thanks to the Hong Kong government’s open stance toward the blockchain industry, we were able to actively discuss digital assets with various global financial companies.”
As such, Hong Kong is busy taking the lead in next-generation financial innovation that combines Web 3 and traditional finance. General Manager Leung emphasized, “Hong Kong is presenting a clear vision to companies with mainland China’s abundant technical talent, consistent regulatory policies, and transparent legislative procedures.” Global attention is focused on Hong Kong’s future financial blueprint, which combines its experience as a financial powerhouse and Web3 innovation.
