Original Title: "Can the Wind of US Stock Tokenization Bring Hong Kong Stocks onto the Chain?"
Original Author: Ye Kai, Huaxia Digital Capital
Previously, Brother Kai discussed this big background: US stock tokenization is moving "global consensus assets" onto the chain. If Hong Kong stocks only focus on a trading platform license and a few bonds, along with the recently popular but still somewhat distant stablecoin licenses, they may miss the next wave of liquidity surge. Let's continue discussing how this wind blows, how Hong Kong can catch it, and how Hong Kong stocks can play along?
What is Wall Street up to this time?
Last time we mentioned these names: Backed, Robinhood, Ondo, Kraken, Coinbase (on Base chain), plus SDX partnering with Citigroup to create a "regulated tokenized trading market." What they are doing is very simple—breaking down AAPL, TSLA, and even the entire basket of S&P blue chips into shareable, stakable, and 24/7 tradable on-chain RWA tokens. Traditional brokers' three-day settlement has turned into three seconds on the chain; 1 share can be split into 10,000 parts, allowing anyone to invest in top companies for just $10; collateralizing bAAPL to borrow USDC, while also conveniently engaging in liquidity mining.
Wall Street's calculation is straightforward: let assets continue to earn interest, and let costs, friction, and global time differences go to hell.
Why does this work?
· Mature Ecosystem: Over $40 trillion in market value, the deepest liquidity pool globally, standard products that retail investors and pension funds understand how to price, requiring no market education.
· Quantitative Allies: Open 24/7, quantitative robots adapt faster than you.
· New Types of Collateral: Blue-chip US stock tokens themselves are "hard currency," capable of earning interest, serving as LPs, and can be used for issuing bonds.
· Transparent Accelerator: On-chain addresses are public, dividend timestamps are written into smart contracts, leaving no blind spots for the SEC to investigate.
In short: Stable and dynamic, who wouldn't want that?
What does this wind mean for Hong Kong?
Stop fixating on the linear thinking of "Hong Kong stocks on the chain = issuing an sHSBC." The first lesson from US stock tokenization is: make tokenized assets into Lego blocks that can be plugged into DeFi, collateral pools, and cross-chain bridges at any time. Hong Kong, with its HKD clearing, Anglo-American legal system, and backing from high-quality mainland assets, can do one thing: upgrade itself to become the "on-chain asset hub of the Asia-Pacific."
Imagine the scene: Hong Kong blue-chip stocks, REITs, MTR tickets, and even cash flows from the Guangzhou-Shenzhen-Hong Kong Express Rail Link, including high-quality mainland assets, all fragmented into RWA tokens, settled in HKD-stable, connecting to the Singapore/Dubai secondary market 24 hours a day, allowing European and American family offices to buy in with just a couple of taps on their phones before bed…
So how to select assets?
Start with "globally understandable, visible cash flows"—high-dividend blue chips like HSBC; utilities like MTR, water, and telecommunications; strong cash flow infrastructure concessions, plus HKMA bonds. These are Hong Kong assets. These things are equivalent to Hong Kong's version of T-Bills: high credit, stable coupon, simple trading logic. What the on-chain world lacks most is this kind of "hard currency." Making them into combinable RWA tokens is the only way to provide DeFi protocols like Aave with an "Asian collateral" option. Of course, there are also quality mainland asset stocks, which I won't elaborate on.
How to piece together the technology and institutional puzzle?
· Fragmentation: 1 share of Hang Seng Bank can be split into 10,000 HSB-Tokens, allowing you to buy just 50.
· Stablecoin Settlement: Use HKD stablecoins as the clearing anchor; automatic conversion between USDC/HKD across pools.
· On-chain Custody: Underlying stocks are held in a trust structure, with only "redeemable certificates" circulating on-chain, presenting a familiar custody structure to regulators.
· Multi-layer Market Making: The Hong Kong Stock Exchange or licensed trading platforms serve as the primary market, Singapore/Dubai as the secondary market, and on-chain DEX+Layer2 as the tertiary market, with deep orders available even on weekends.
This "HKD-stable + Hong Kong stock tokenization + compliant custody" trinity is the true on-chain financial stack for Hong Kong.
How else can the HKD be utilized?
Don't position the HKD as "electronic change." It can completely serve as the reserve currency of the on-chain financial market:
· First, create HKD-stable to support 24-hour settlement;
· Write HKD assets (blue chips, bonds) into smart contracts, distributing dividends weekly/monthly;
· Then allow HKD-stable to connect with global liquidity on Uniswap, Curve—creating a swift channel for "HKD-USDC-bAAPL" in the liquidity pool.
With this closed loop, the HKD is not just a medium of payment but also a pivot for on-chain arbitrage, which can truly transform Hong Kong into the "RWA HKD Zone."
Can Hong Kong stock tokenization succeed? Brother Kai thinks it's quite difficult.
First point: Solve the thickness of the asset pool, and don't let retail investors have only three stocks to buy.
Currently, Hong Kong's liquidity is lacking; without rich assets, there is no liquidity, and without liquidity, there is no price discovery. Don't rush to issue licenses; first, open the door to accommodate more quality emerging enterprises into Hong Kong stocks, and then extend the whitelist of on-chain Hong Kong stock assets.
Second point: Get stablecoins and market makers sorted out before discussing technology.
Who will handle cross-border clearing for the Hong Kong stock tokenization fund? Who will place orders 24/7? Without these two ends, no matter how fast the chain is, it’s just a local area network.
Third point: Regulators need to set the framework, not the formula.
The SEC's approval of Bitcoin ETFs did not impose strict regulations. If Hong Kong wants to protect its financial center halo, it’s best to leave room for technological neutrality, allowing chains and protocols to compete for efficiency, and not let the "single consortium chain" become the only bottleneck.
Conclusion: Are you brave enough to blow the wind to Victoria Harbour?
The wind of US stock tokenization has already validated: on-chain + high-recognition assets = liquidity nuclear explosion. Hong Kong has the world's toughest financial licensing system and a backing asset pool from the mainland. What is truly lacking is a pioneer willing to decisively implement "HKD stablecoin + Hong Kong stock tokenization + multi-chain liquidity pool." The wind is already at the door. Whoever pushes the door open first will be the entry point for the next bull market. The Red Robe Godfather is waiting for you at Central Pier; don’t let this wind blow past your head and drift off to Dubai or Singapore to reap the benefits—now that would be truly awkward.
ARAW Always RWA Always Win! The RWA market will rapidly find its place in the wild growth of 2025. If you are interested in the RWA market and investment banking partners, you can add WeChat YekaiMeta and introduce yourself to join the RWA discussion group.
This article is from a submission and does not represent the views of BlockBeats.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
