The RWA market continues to rise, with Hong Kong becoming a compliance development pioneer.

The global asset tokenization process is accelerating. Data shows that by April 2025, the total on-chain RWA asset value will exceed $22 billion. Deloitte predicts that the tokenized real estate market will reach $4 trillion by 2035.

In this wave of financial innovation, Hong Kong has quickly become a pioneer in the compliance development of the RWA field, thanks to its unique institutional advantages. From the tokenization project of charging pile assets to the launch of Asia's first compliance tokenized fund, several benchmark cases have successfully landed, confirming the enormous application potential of this innovative financing method in the field of physical assets.

Definition and Advantages of RWA

RWA(Real World Assets) refers to the use of blockchain technology to map physical or financial assets onto the chain, transforming them into digital tokens with high liquidity and divisibility. From a legal Compliance perspective, RWA is a broad concept, and all processes that achieve asset tokenization through blockchain can be referred to as RWA.

The main advantages of RWA include:

1. Activate heavy asset financing scenarios that are difficult to reach in traditional finance, providing enterprises with a new "blood-creation method"

2. Lower the investment threshold, allowing small and medium investors to participate in high-threshold asset investments.

3. Reduce financing costs and improve financing efficiency

4. Customizable trading structures that flexibly meet investors' needs.

5. Achieve effective separation of "company credit" and "asset credit"

6. Form an active token ecosystem and community, promoting the coordinated development of on-chain and off-chain.

Regulatory Framework for RWA in Hong Kong

The Hong Kong Securities and Futures Commission adopts a "perspective principle" to regulate RWA, focusing on the financial attributes of the underlying assets rather than the token form. The main regulatory documents include:

1. "Circular on Tokenized Investment Products Recognized by the Securities Regulatory Commission" clarifies the regulatory requirements for security tokens.

2. "Circular on Intermediaries Engaging in Activities Related to Tokenized Securities", regulating the behavior of intermediary institutions.

3. "Ensemble Project", exploring the application scenarios of tokenization technology

These policies provide clear guidance for the development of the RWA market.

Compliance points for issuing RWA in Hong Kong

Due to regulatory restrictions in the mainland, Chinese companies need to issue RWA tokens overseas. Hong Kong has become an ideal choice. Main compliance points include:

underlying asset Compliance

1. Asset confirmation: Ensure that asset ownership is legal and clear.
2. Asset audit: Assessing asset value and risk
3. Asset divestiture: Achieve risk isolation through SPV

Data on-chain Compliance

Adopt the "two chains and one bridge" model or rely on the Hainan Free Trade Data Port to achieve Compliance data on-chain and cross-border circulation.

capital flow Compliance

Design a framework for the collection and circulation of overseas funds. Common funding channels include QFLP, FDI, QFII, etc.

When promoting RWA projects, it is necessary to comprehensively consider compliance requirements at all stages, and be supported by a professional team throughout the process to ensure compliance takes precedence.