The year 2024 marked a pivotal chapter in Hong Kong’s journey to becoming a global hub for virtual assets. With strategic regulatory advancements, institutional adoption, and innovative real-world asset (RWA) tokenization initiatives, the city laid a robust foundation for digital finance. While challenges remain in bridging the gap between traditional capital and emerging technologies, Hong Kong's progress across exchanges, ETFs, broker-dealer integration, and RWA development signals strong momentum heading into 2025.
This comprehensive overview explores the key milestones of Hong Kong’s virtual asset ecosystem in 2024, highlighting how regulatory clarity, market infrastructure, and cross-sector collaboration are shaping the future of finance.
The Rise of Regulated Virtual Asset Exchanges
As of January 11, 2025, seven virtual asset trading platforms have received formal approval from the Securities and Futures Commission (SFC) to operate legally in Hong Kong. These platforms hold Type 1 (Securities Dealing), Type 7 (Automated Trading Services), and AMLO (Anti-Money Laundering Ordinance) licenses — a trifecta that ensures compliance, security, and investor protection.
OSL and Hashkey Lead the Pack
OSL Group became the first platform approved under the AMLO framework on April 19, 2024. As a wholly owned subsidiary of BC Technology Group (HKEX: 0863), OSL has maintained a strong foothold in institutional-grade services, particularly in virtual asset spot ETFs and RWA offerings.
Hashkey Exchange followed closely in May 2024, becoming one of the first fully licensed virtual asset service providers. It launched HashKey Pro, an institutional trading solution used by companies like ZhongAn Bank and Victory Securities. By November 2024, Hashkey reported over HK$58 billion in cumulative trading volume and managed assets exceeding HK$10 billion.
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HKVAX Enters with a Focus on RWA and STO
On October 4, 2024, Hong Kong Virtual Asset Exchange (HKVAX) became the third regulated platform. Unlike generalist exchanges, HKVAX focuses exclusively on security token offerings (STOs) and real-world asset tokenization (RWA).
In October 2024, HKVAX signed a memorandum of understanding with Fórum Oceano and Yacooba Labs to develop blue economy-related STOs in Europe. Later that year, it partnered with Alibaba Cloud to strengthen its technical infrastructure and security protocols — a move underscoring its long-term vision in regulated digital securities.
Four More Platforms Join in December
On December 18, 2024, four additional platforms — HKbitEX, Accumulus, DFX Labs, and EX.IO — were granted full licenses on the same day:
- HKbitEX, backed by Tai Chi Capital Group, integrates digital asset trading with Web3 SaaS solutions.
- Accumulus, launched by Yun Account Greater Bay Area Technology (Hong Kong), leverages its parent company’s massive HR tech footprint across 138 countries.
- DFX Labs brings deep blockchain expertise, with leadership from former executives at Blockchain Finance and HashKey Group.
- EX.IO, formed through a strategic merger between BusyWhale and Futu Securities’ subsidiary华盛资本, is supported by investors including Sinovation Ventures and WeSure Capital.
This coordinated approval wave signaled the SFC’s confidence in mature applicants and set a precedent for future licensing rounds.
On the same day, the SFC released a new circular titled "Licensing Process and Optimized Phase Two Assessment", offering clearer guidance for the remaining 11 pending applicants. A formal consultation group will be established in early 2025, allowing licensed platforms to directly engage with regulators — a step toward more responsive and industry-informed policymaking.
Virtual Asset Spot ETFs: A Game-Changer for Institutional Adoption
While U.S. regulators took nearly a decade to approve Bitcoin spot ETFs, Hong Kong achieved this milestone in record time. On April 15, 2024, the SFC gave preliminary approval; by April 24, both Bitcoin and Ethereum spot ETFs were officially greenlit.
On April 30, six spot ETFs from China Asset Management (Hong Kong), Bosera International, and Harvest Global Investments began trading on the Hong Kong Stock Exchange (HKEX).
A key differentiator: Hong Kong ETFs support in-kind creation and redemption. Investors can exchange physical BTC or ETH for ETF shares — enhancing liquidity and reducing market sell pressure during redemptions.
On launch day, the ETFs raised approximately HK$2 billion (~$255 million USD), with total trading volume reaching HK$87.58 million ($11.2 million USD). By January 7, 2025:
- Total trading volume for Bitcoin spot ETFs reached HK$5.257 billion
- Net inflows amounted to roughly 380 BTC
- Assets under management grew by 66%
Though still smaller than U.S. equivalents — where Bitcoin ETFs represent 1.2% of total ETF assets versus Hong Kong’s 0.66% — the trajectory is promising. These products are critical gateways for traditional "old money" institutions seeking regulated exposure to crypto.
Brokers and Asset Managers Embrace Digital Assets
ETFs alone don’t drive adoption — active participation from financial institutions does.
Tigers and Victories: Traditional Brokers Go Web3
Tiger Brokers (Hong Kong) made headlines in May 2024 by launching virtual asset trading for professional investors via its Tiger Trade platform. With low fees (as low as 0.2%) and no custody charges, it demonstrated aggressive positioning in the digital asset space.
Tiger secured its upgraded Type 1 license in January 2024 and added a Type 9 (Asset Management) license in March — enabling it to offer discretionary portfolios and collective investment schemes involving virtual assets.
Meanwhile, Victory Securities, a local pioneer, maintained its first-mover advantage:
- In April 2024, it became the only securities firm accepting in-kind subscriptions for Bitcoin/ETH ETFs.
- In October, it launched Victory VSG Virtual Asset Multi-Strategy Fund, the first SFC-licensed Web3 fund accepting stablecoin investments.
- In November, it became the first broker approved to sell cash-settled virtual asset structured products.
These milestones highlight how early movers gain significant regulatory and operational leverage.
Institutional Onboarding at Scale
Beyond high-profile names, systemic change is underway:
- As of January 11, 2025, 31 brokers have upgraded to Type 1 licenses allowing them to offer virtual asset trading through integrated accounts.
- The number of SFC-licensed asset managers (Type 9) able to allocate over 10% of portfolios to virtual assets has grown from just 11 at the start of 2024 to 36 by early 2025.
This surge reflects growing confidence among traditional finance players. With compliant infrastructure now in place, more “old money” institutions are preparing to enter — setting the stage for broader capital inflows in 2025.
RWA: Bridging Real Economies with Digital Finance
Tokenizing real-world assets is no longer theoretical — Hong Kong is turning it into practice.
Government-Led Green Bond Tokenization
On February 7, 2024, the Hong Kong government issued HK$6 billion (~$769 million USD) in multi-currency digital green bonds — the world’s first such issuance in HKD, CNY, USD, and EUR. Built on blockchain using HSBC Orion as the digital asset platform and settled via CMU (Clearing House Automated Transfer System), this project advanced transparency, efficiency, and investor accessibility.
It evolved from Project Genesis (2021), now achieving breakthroughs in standardized issuance processes and digital disclosure mechanisms.
HKMA’s Ensemble Sandbox Drives Innovation
Launched on March 7, 2024, the Ensemble project by the Hong Kong Monetary Authority (HKMA) aims to explore tokenized deposits and wholesale central bank digital currency (wCBDC).
The sandbox’s first phase began August 28, focusing on four core areas:
- Fixed income & investment funds
- Liquidity management
- Green & sustainable finance
- Trade & supply chain financing
Participants include major banks like HSBC, Standard Chartered, Bank of China (Hong Kong), Hang Seng Bank, and tech leaders such as Ant Digital Technologies and Microsoft (Hong Kong). The goal is to test interoperability between tokenized assets, deposits, and wCBDC in real-world scenarios.
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Stablecoin Sandboxing Paves the Way
Recognizing stablecoins as foundational to RWA ecosystems, the HKMA launched a stablecoin issuer sandbox in March 2024.
By July 18, three firms were admitted:
- JD.com – exploring payments and supply chain use cases
- Circle – focusing on capital markets applications
- Standard Chartered – developing cross-border settlement solutions
Stablecoins promise faster settlements, lower costs, and programmable finance features — crucial for automating complex financial workflows.
On December 6, the government published the Stablecoin Ordinance Bill, proposing strict licensing requirements to mitigate risks related to reserve transparency and systemic stability. While essential for consumer protection, these rules may pose entry barriers for smaller innovators — a balance regulators must carefully navigate.
Breakthrough RWA Deals Hit the Market
In December 2024 alone:
- Ant Digital Technologies partnered with GCL Energy to complete China’s first RWA deal backed by photovoltaic assets worth over RMB¥200 million (~$28 million USD). Using IoT and blockchain, they tokenized data on performance and revenue from household solar projects across Hunan and Hubei provinces.
- Cinda International Asset Management issued STBL, Hong Kong’s first tokenized short-term asset-backed liquidity note on Ethereum. Each STBL token is pegged to $1 USD and distributes daily interest automatically to accredited investors’ wallets.
These cases demonstrate that RWA is moving beyond pilot stages into live financial products — with implications for energy financing, private credit, real estate, and beyond.
Looking Ahead to 2025
Hong Kong’s virtual asset market entered 2025 with solid infrastructure: seven licensed exchanges, growing ETF liquidity, widespread broker adoption, and tangible RWA innovation. The foundation is set for deeper integration between traditional finance and digital assets.
The central challenge? Attracting large-scale institutional capital while maintaining regulatory rigor. Success hinges on striking the right balance between innovation and investor protection — especially as stablecoins and complex tokenized products become mainstream.
With coordinated efforts from regulators, financial institutions, and tech innovators, Hong Kong is well-positioned to become a leading global hub for secure, compliant, and impactful digital finance.
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Frequently Asked Questions (FAQ)
Q: How many virtual asset exchanges are licensed in Hong Kong as of early 2025?
A: Seven virtual asset trading platforms have received full regulatory approval from the SFC as of January 11, 2025.
Q: Are retail investors allowed to trade crypto ETFs in Hong Kong?
A: Yes. Hong Kong allows retail investors to trade approved Bitcoin and Ethereum spot ETFs listed on the HKEX through licensed brokers.
Q: What is RWA in the context of Hong Kong’s financial strategy?
A: RWA stands for Real-World Assets. In Hong Kong’s strategy, it refers to using blockchain technology to tokenize physical assets like bonds, solar farms, or receivables — making them tradable and accessible via digital financial platforms.
Q: Can stablecoins be issued freely in Hong Kong?
A: No. While a sandbox allows testing under supervision, full issuance will require compliance with the proposed Stablecoin Ordinance Bill — which includes strict capital adequacy and audit requirements.
Q: What role does the HKMA play in advancing tokenization?
A: The HKMA leads initiatives like the Ensemble sandbox to test tokenized deposits and wCBDCs. It also oversees stablecoin regulation and promotes cross-border collaboration on digital financial infrastructure.
Q: Is Hong Kong competing with mainland China’s digital currency initiatives?
A: Not directly. Hong Kong complements China’s e-CNY efforts by focusing on international capital flows, private-sector innovation, multi-currency systems, and regulated DeFi integrations — positioning itself as an open gateway for global digital finance.
Keywords: virtual asset exchange Hong Kong, crypto ETF Hong Kong, RWA tokenization, SFC licensed brokers, stablecoin regulation Hong Kong, Ensemble sandbox HKMA, digital green bonds, Type 1 license upgrade