I have talked about this background before: the tokenization of US stocks is moving "global consensus assets" to the chain. If Hong Kong stocks still focus on a trading platform license and a few bonds, as well as the recently popular but still some time-consuming stablecoin license, they may miss the next wave of liquidity peak. Let's continue to talk about how this trend blows, how Hong Kong can take it, and how to play Hong Kong stocks?
What on earth is Wall Street doing now?
We mentioned these names last time: Backed, Robinhood, Ondo, Kraken, Coinbase (Base on the chain), and SDX is working with Citi to create a "regulated tokenized trading market." What they do is simple - split AAPL, TSLA, and even a basket of S&P blue chips into on-chain RWA tokens that can be shared, pledged, and traded 24/7. The settlement of traditional brokers takes three days and two nights, but it becomes three seconds on the chain; 1 share is split into 10,000 shares, and 10 US dollars can be invested in top companies that grandpa and aunt have heard of; pledge bAAPL to borrow USDC, and you can also do liquidity mining.
Wall Street has only one plan: let assets continue to earn interest, and let costs, frictions, and global time differences go to hell.
Why does this work?
· Mature ecosystem: With a market value of more than 40 trillion US dollars and the world’s deepest liquidity pool, retail investors and pension funds understand how to price standard products, and no market education is required.
· Quantitative teammates: Available 24/7, quantitative robots will adapt before you do.
New collateral: Blue chip U.S. stock tokens are “hard currency” in themselves. They can generate interest, serve as LPs, and can also be used to issue bonds.
Transparent accelerator: The on-chain address is public, and the dividend timestamp is written into the smart contract, so there is no blind spot for the SEC to investigate.
In one sentence: stable and lively, who doesn’t want it?
What does this trend mean for Hong Kong?
Stop thinking in a straight line: "Hong Kong stocks on the blockchain = launching a sHSBC." The first lesson of U.S. stock tokenization is to make tokenized assets into Lego blocks and insert them into DeFi, mortgage pools, and cross-chain bridges at any time. Hong Kong has Hong Kong dollar clearing, Anglo-American legal systems, and is backed by high-quality assets in the mainland. It can do one thing: upgrade itself to the "Asia-Pacific on-chain asset port."
Imagine the scene: the cash flow of Hong Kong blue chips, REITs, MTR notes, and even the Guangzhou-Shenzhen-Hong Kong High-Speed Railway, including Hong Kong stocks and mainland high-quality assets, are all split into fragmented RWA tokens, settled with HKD-stable, connected to the Singapore/Dubai secondary market 24 hours a day, and European and American family offices can buy them with just two clicks on their mobile phones before going to bed...
How do you choose assets?
First, choose the ones that are "understandable to the world and have visible cash flow" - high-dividend blue chips such as HSBC; utilities such as MTR, water, and telecommunications; infrastructure franchises with strong cash flow, plus HKMA bonds. These are Hong Kong-funded assets. These things are equivalent to the Hong Kong version of T-Bill: high credit, stable coupons, and simple transaction logic. What the on-chain world lacks most is this kind of "hard currency". Only by making them into composable RWA tokens can DeFi protocols such as Aave have an "Asian collateral" option. Of course, there are also high-quality mainland asset stocks, which are not mentioned here.
How to put the technology and system puzzle together?
Fragmentation: 1 share of Hang Seng Bank is split into 10,000 HSB-Tokens, and you can buy them for 50 yuan.
Stablecoin settlement: Hong Kong dollar stablecoin is used as a settlement anchor; USDC/HKD is automatically exchanged across pools.
On-chain custody: The underlying stocks are held in a trust structure, and only “redeemable certificates” circulate on the chain. What regulators see is a familiar custody structure.
Multi-layer market making: Hong Kong Stock Exchange or licensed trading platforms make the first level, Singapore/Dubai makes the second level, and on-chain DEX+Layer2 makes the third level. There are also deep orders on weekends.
This trinity of "HKD-stable + Hong Kong stock tokenization + compliant custody" is the true Hong Kong version of the on-chain financial stack.
What else can you do with the Hong Kong dollar?
Don’t think of the Hong Kong dollar as “electronic change”. It can be the reserve currency of the on-chain financial market:
· First do HKD-stable to support 24h settlement;
Write Hong Kong dollar assets (blue chips, bonds) into smart contracts and pay dividends on a weekly/monthly basis;
· Let HKD-stable connect to global liquidity on Uniswap and Curve - a quick channel of "HKD-USDC-bAAPL" will appear in the funding pool.
With this closed loop, the Hong Kong dollar is not only a payment medium, but also an anchor point for on-chain arbitrage, which can truly build Hong Kong into the "RWA Hong Kong Dollar Zone".
Can Hong Kong stocks be tokenized? Kai Ge thinks it is difficult
First sentence: First solve the thickness of the asset pool, and don’t let retail investors only have three stocks to buy.
The liquidity of Hong Kong stocks is currently lacking. Without rich assets, there is no liquidity, and without liquidity, there is no price discovery. Don’t rush to issue licenses. First open the door to accommodate more high-quality emerging companies in the Hong Kong stock market, and then extend the white list of Hong Kong stock assets that can be put on the chain.
Second sentence: Only after we get stablecoins and market makers right, will technology be worth talking about.
For Hong Kong stock tokenized funds, who will do cross-border clearing? Who will place orders 24/7? Without these two ends, no matter how fast the chain is, it is just a local area network.
The third sentence: Supervision should set a framework, not a formula.
The SEC did not set any rules or regulations when it approved the Bitcoin ETF. If Hong Kong wants to maintain its reputation as a financial center, it is best to leave room for technology neutrality, allowing chains and protocols to roll up efficiency, and not let the "only alliance chain" become the only bottleneck.
Ending: Do you dare to blow the wind to Victoria Harbour?
The trend of tokenization of US stocks has been verified: on-chain + high-cognition assets = liquidity explosion. Hong Kong has the world's most stringent financial license system, and also has an issuing end backed by the mainland asset pool. What is really lacking is a pioneer who dares to make a one-time decision on "Hong Kong dollar stablecoin + Hong Kong stock tokenization + multi-chain liquidity pool". The wind has blown to the door. Whoever pushes the door open first will be the traffic entrance for the next round of bull market. The red godfather is waiting for you at the Central Pier. Don't let this wind blow past your head, but drift to Dubai or Singapore to reap the benefits - that would be really embarrassing.
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