The stablecoin market is heating up, with major financial players in Hong Kong racing to capture opportunities in the evolving digital asset ecosystem. Recently, Guotai Junan International received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its securities trading license, allowing it to offer virtual asset trading services. This development has triggered a surge in stablecoin-related stocks and boosted fintech-themed ETFs.
Amid this momentum, several mainland Chinese mutual fund subsidiaries in Hong Kong are actively engaging in the stablecoin space—participating in regulatory sandboxes, testing infrastructure, and preparing to launch tokenized financial products. As Hong Kong solidifies its position as a global hub for digital finance, these institutions are not only innovating but also aggressively recruiting talent skilled in blockchain and virtual assets.
Regulatory Momentum Fuels Stablecoin Growth
A key driver behind this rapid movement is Hong Kong’s upcoming Stablecoin Ordinance, passed by the Legislative Council on May 21 and set to take effect on August 1, 2025. The new regulation will introduce a licensing regime for issuers of fiat-collateralized stablecoins, bringing much-needed clarity and oversight to the sector.
Under the framework, only licensed entities will be permitted to issue stablecoins pegged to fiat currencies like the Hong Kong dollar. These issuers must maintain full reserves, undergo regular audits, and publish monthly reserve reports—ensuring transparency and user protection.
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This regulatory clarity has encouraged both traditional financial institutions and tech giants to accelerate their plans. Ant International and JD Binance Chain Technology (Hong Kong) have already announced their stablecoin initiatives. Circle Innovation Technology, for instance, is preparing to launch HKDR, a Hong Kong dollar-pegged stablecoin, advertised prominently on its website as “coming soon.”
Fund Managers Dive Into Tokenization and Stablecoin Integration
Long before the ordinance was finalized, several fund subsidiaries saw the potential and began laying the groundwork. Companies like China Asset Management (Hong Kong) and Bosera Funds (International) have been at the forefront of integrating digital assets into mainstream finance.
China Asset Management (Hong Kong) has actively participated in government-led sandbox projects such as the Stablecoin Sandbox, Project Ensemble (initiated by the Hong Kong Monetary Authority to advance tokenized markets), and the e-HKD+ Pilot for digital Hong Kong dollars. Through collaborations with HSBC, Visa, ANZ, and the HKMA, the firm has successfully tested on-chain payments, tokenized fund transactions, and end-to-end capital flows.
“Once the SFC regulations are fully implemented, we plan to explore using compliant stablecoins for fund subscriptions and redemptions,” said Alvin Chu, Head of Digital Assets and Family Wealth at China Asset Management (Hong Kong). “This innovation could significantly boost our fund management scale.”
In April 2024, six spot virtual asset ETFs were listed in Hong Kong, including Bitcoin and Ethereum ETFs issued by Bosera, China Asset Management, and Harvest Fund Management. These ETFs hold physical crypto assets and allow investors to subscribe using either cash or cryptocurrency—opening crypto investing to retail and institutional clients through regulated brokerage platforms.
China Asset Management (Hong Kong) emphasizes its early-mover advantage: launching Asia’s first spot crypto ETFs in April 2024 and following up in February 2025 with Hong Kong’s first retail tokenized money market fund. This product brings Real World Assets (RWA) on-chain, enabling broader access to tokenized traditional finance instruments.
Bosera Funds (International) also advanced its strategy by securing SFC approval for a tokenized money market ETF in both HKD and USD, developed in partnership with HashKey Group.
Talent War Escalates in the Digital Finance Sector
As these products evolve, so does the demand for specialized talent. With stablecoins and tokenization reshaping financial services, fund managers are now competing fiercely for professionals with expertise in blockchain, fintech, and regulatory compliance.
Bosera recently posted a job listing for a Virtual Asset Product Manager, seeking candidates with at least three years of experience in virtual assets, blockchain, or fintech. Key responsibilities include designing and managing virtual asset products, analyzing global market trends and regulations, and building product architectures covering investment, trading, custody, clearing, payment, and yield distribution.
Meanwhile, China Asset Management (Hong Kong) established a dedicated digital asset team in 2024 during its ETF rollout. The team spans product development, investment management, operations, compliance, and legal functions—ensuring a holistic approach to digital innovation.
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The Future: Bridging Traditional Finance and Web3
Looking ahead, these fund subsidiaries aim to deepen integration between traditional finance (TradFi) and decentralized finance (DeFi). Plans include:
- Expanding the range of tokenized fund offerings
- Enabling secondary market trading of tokenized funds on regulated platforms
- Exploring settlement using digital currencies like stablecoins and digital Hong Kong dollars
- Improving on-chain transaction efficiency and liquidity
Such moves align with Hong Kong’s broader vision of becoming a leading center for RWA tokenization, where real-world financial instruments—from bonds to funds—are digitized and traded on blockchain networks.
Frequently Asked Questions
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset such as a fiat currency (e.g., USD or HKD), commodities like gold, or financial instruments like U.S. Treasuries.
Q: Why are mutual fund companies entering the stablecoin space?
A: Stablecoins offer faster settlement, lower transaction costs, and programmable features ideal for automated financial services. By integrating them into fund operations—like subscriptions and redemptions—firms can improve efficiency and attract tech-savvy investors.
Q: Are stablecoins safe?
A: Regulated stablecoins must hold full reserves and undergo regular audits. While risks exist (such as custody or counterparty risk), compliance frameworks like Hong Kong’s upcoming ordinance enhance transparency and investor protection.
Q: What is RWA (Real World Assets) tokenization?
A: It refers to converting physical or traditional financial assets—such as real estate, bonds, or funds—into digital tokens on a blockchain. This increases liquidity, reduces intermediaries, and enables fractional ownership.
Q: Can retail investors access these new digital funds?
A: Yes. Products like Bosera’s and China Asset Management’s tokenized funds are designed for retail investors and available through licensed platforms in Hong Kong.
Q: How do ETFs backed by Bitcoin or Ethereum work?
A: These ETFs directly hold the underlying cryptocurrency. Investors can buy shares through brokers without managing private keys. They can also use existing crypto holdings to subscribe for ETF shares—a feature unique to Hong Kong’s market structure.
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Conclusion
The convergence of stablecoins, tokenization, and traditional asset management marks a pivotal shift in global finance. With strong regulatory support in Hong Kong and proactive involvement from major fund managers, the financial industry is undergoing a digital transformation. As firms continue to innovate—and compete for top talent—the integration of virtual assets into everyday finance appears not just inevitable, but already underway.
Core Keywords: stablecoin, tokenized funds, RWA, digital asset, Hong Kong SFC, ETF, blockchain finance, virtual asset talent