Shanghai-based conglomerate Fosun International rolled out its one-stop platform for real-world assets (RWA) technology, issuance, and distribution on Wednesday through its Hong Kong-based wealth tech arm Finloop.
The move comes as a growing number of firms have announced plans to ride the wave of virtual asset development in Hong Kong.
The FinRWA Platform (FRP 1.0) offers asset owners guidelines and technical support for issuing RWA. It provides financial institutions with services for distributing and trading RWA and stablecoin, while also enabling investors to manage both virtual asset trades and traditional securities transactions through one platform.
FRP 1.0 has listed the world’s first renminbi-denominated tokenized money market fund, launched by China Asset Management (Hong Kong) on July 17, as well as similar funds in US dollars and Hong Kong dollars. Fosun said this makes it the first tech brokerage in Hong Kong to offer a full suite of tokenized money market funds.
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The launch came after Fosun International Securities secured regulatory approval from Hong Kong’s Securities and Futures Commission to upgrade its Type 1 license for dealing in securities, which allows the firm to offer virtual asset trading services. More than 40 firms have obtained similar license upgrades so far, with most being traditional brokerage firms.
RWA, such as real estate, stocks, and bonds, can be tokenized through blockchain technology, allowing them to be traded and transferred on blockchain networks.
Finloop CEO Cai Hua said, traditional financial assets are likely to move onto blockchain gradually, and securities tokenization is expected to become an irreversible trend.
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Cai said the platform targets HK$100 billion ($12.74 billion) in assets under custody within five years, building on its current base of nearly HK$20 billion, adding that with related policies and market conditions becoming more mature, further growth is expected.
The company plans to deepen its collaboration with stablecoin issuers, RWA investment banks, cryptocurrency exchanges, and various industry players in the future, in a bid to deliver holistic solutions and advance the development of Hong Kong’s virtual asset ecosystem, Cai said.
This will help Hong Kong accelerate its transformation into a global hub for RWA innovation, issuance and pricing, he added.
Finloop is among the firms brought to Hong Kong in 2024 with the assistance of Office for Attracting Strategic Enterprises (OASES), which is tasked with wooing high-potential companies to the city.
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Peter Yan King-shun, director-general of OASES, said digital finance is one of the five priority sectors targeted under the office. Leading players in the industry expanding their presence in Hong Kong could inject fresh ideas into the city’s asset tokenization and foster ecosystem development, he said.
In late June, the Hong Kong Special Administrative Region government released its second policy statement on digital assets, underscoring its ambition to establish the city as a global innovation hub in the sector. A key part of its plans is to broaden the scope of tokenized products.
Beyond the government’s clear policy stance, the upcoming implementation of Hong Kong’s Stablecoins Ordinance has encouraged a growing number of financial and technology firms to capitalize on the opportunities presented by the city’s virtual asset advancement. For instance, multiple global giants with Hong Kong branches have announced plans to apply for stablecoin issuer licenses, such as e-commerce group JD and Standard Chartered Bank.
Contact the writer at irisli@chinadailyhk.com
