Ignoring the Trend of Tokenization

As the world is swept up in the frenzy of tokenizing U.S. stocks, Hong Kong appears to be standing still. Executives from leading Hong Kong crypto firms express a grim outlook: "In the short term, no company will attempt to tokenize Hong Kong stocks."

A Missed Opportunity Alert

Ten years prior, Hong Kong missed a golden chance to develop stablecoins tied to the Hong Kong dollar and RMB, falling far behind the U.S. dollar stablecoin's staggering annual trading volume of $28 trillion. Now, while the stock tokenization market is gaining momentum, Hong Kong seems poised to miss yet another boat.

U.S. Firms Lead the Charge

In early July 2025, major U.S. players like Robinhood and Kraken launched tokenized stock products, allowing everyday users unprecedented access to stocks like Tesla and Apple directly on the blockchain. Robinhood even stirred the pot by offering tokenized shares of private firms such as SpaceX and OpenAI, garnering immense interest. U.S. SEC Chair Paul Atkins openly supports this innovation.

Why the Silence in Hong Kong?

Against this dynamic backdrop, Hong Kong's crypto industry is remarkably quiet. Companies like HashKey and OSL admit they are attentively watching market developments but have yet to explore stock tokenization opportunities. This raises the question: why has Hong Kong decided to remain idle?

A Regulatory Stranglehold

The resistance appears tied to strict regulations. Hong Kong's laws grant the Hong Kong Stock Exchange a monopoly over stock trading. Attempting to tokenize stocks could threaten this status quo, leading industry insiders to ask, "Who wants to take the first step to disrupt that monopoly?"

A Divide in Innovation Approaches

Unlike the proactive stance of U.S. regulators who support financial innovation, Hong Kong's framework seems immobilized. Companies in the U.S. see themselves as challengers to traditional finance, creating a vibrant innovation ecosystem that encourages experimentation. Comparatively, Hong Kong’s approach feels stilted and cautious.

A Trillion-Dollar Opportunity Awaits

Experts predict that stock tokenization could soon blossom into a trillion-dollar market, yet Hong Kong seems hesitant to embrace it. Rich with potential, the global demand for tokenized U.S. stocks could match or exceed existing markets—especially as users from Europe and China face regulatory restrictions.

Future Prospects for Tokenization

Tokenization promises advantages beyond traditional stock trades: 24/7 trading, access to private equity, and compliance bypassing for global users. Although the current market value of U.S. stock tokenization hovers around $10 million—a minuscule fraction of the stablecoin market—it could witness explosive growth akin to Tether’s journey.

Final Thoughts: Don’t Miss the Boat Again

If history is any indicator, the waves of change can come swiftly and unexpectedly, as seen with Tether's meteoric rise. The advent of stock tokenization could be Hong Kong's next big moment—or another opportunity lost to inaction. As the blockchain landscape evolves, will Hong Kong rise to the occasion, or sit on the sidelines once more?