(Market Insider) — The China Securities Regulatory Commission (CSRC) has reportedly advised several mainland-based brokerages to suspend their real-world asset (RWA) tokenization activities in Hong Kong, according to Reuters sources.
At least two leading brokerages have received such guidance, which is intended to strengthen risk management in this emerging sector and ensure companies operate from a solid and compliant business foundation.
The move comes as Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) review the legal framework for tokenization, benchmarking against global practices.
RWA tokenization involves converting traditional assets—such as stocks, bonds, and even real estate—into digital tokens that can be traded on blockchain platforms. Over the past few months, several mainland Chinese firms, including securities brokerages, have already launched RWA products in Hong Kong. It remains unclear how long the CSRC’s suspension request will remain in place.
The HKMA has acknowledged that “the tokenization space is evolving rapidly.” It is currently exploring Project Ensemble, a limited pilot sandbox focused initially on tokenized bonds. This initiative aligns with Hong Kong’s broader ambition to position itself as a leading digital asset hub in Asia.
Meanwhile, Beijing remains cautious. Since 2021, China has banned cryptocurrency trading and mining due to systemic financial risks. Last month, regulators also instructed major brokerages to stop issuing research reports recommending stablecoins, seeking to temper domestic investor enthusiasm for digital currencies.
Despite regulatory caution, the RWA market continues to expand globally. It is currently valued at around $29 billion but could surpass $2 trillion by 2030, according to forecasts by China Merchants Securities. Momentum is building: in June, GF Securities’ Hong Kong branch launched “GF Tokens,” a yield product pegged to USD, HKD, and RMB. In August, China Merchants Bank International helped Shenzhen Futian Investment raise $70.29 million via a digital bond issuance based on RWA. Real estate developer Seazen Group has also announced plans to establish a dedicated RWA research institute in Hong Kong.
Positive Investor Comment
Commenting on these developments, Dung Duong, a global investor, said:
“While regulatory caution from mainland China is understandable, the long-term potential of real-world asset tokenization is undeniable. By bridging traditional finance and blockchain technology, RWA opens up new avenues for liquidity, transparency, and global capital access. I believe that once clear regulatory frameworks are established, RWA could become one of the most transformative innovations in global financial markets over the next decade.”
