Hong Kong Aims to Become No.1 in Cross-Border Digital Asset Management by 2027
Hong Kong’s Financial Secretary, Paul Chan, announced at Wealth Management Expo 2025 that the city targets the top spot in cross-border digital asset management within two to three years. As of March 2025, Hong Kong boasts 976 registered funds and a 285% surge in net inflows, totaling US$44 billion. The jurisdiction has passed stablecoin legislation effective August 1, making it one of the first with a statutory framework for fiat-backed tokens. The Hong Kong Monetary Authority’s Project Ensemble tokenization sandbox is testing asset digitization for interbank settlements, while dual licensing for virtual asset trading platforms covers both retail crypto exchanges and tokenized securities venues. Ten platform licenses have been granted so far, with eight more under review. Hong Kong also approved spot Bitcoin and Ethereum ETFs in April 2024 and is exploring crypto tax exemptions for hedge funds and family offices. Positioning itself against competitors like Singapore, Dubai and the UK, Hong Kong leverages deep digital infrastructure and proximity to mainland China to attract global capital and innovate in regulated digital finance.
Bullish
Hong Kong’s comprehensive push—including stablecoin legislation, tokenization sandbox projects and dual licensing—reduces regulatory uncertainty and lowers operational costs for institutional investors. Approving spot Bitcoin and Ethereum ETFs and exploring tax incentives further enhance appeal. Similar regulatory clarity in Singapore and the US has historically driven inflows and price rallies in BTC and ETH. In the short term, expect increased trading volumes and ETF-driven demand. Over the long term, robust infrastructure and legal frameworks will sustain asset growth and market confidence, likely exerting continued upward pressure on major crypto assets.