The Hong Kong pilot program sparks heated debate: How can RWA be transformed from a concept into a real asset?

The "Blockchain and Digital Asset Pilot Funding Scheme" launched by Hong Kong Cyberport is showing initial results, with its unexpectedly strong market response quickly becoming a hot topic in the global RWA (Real-World Asset) tokenization field. According to a report by Zhitong Finance on December 10th, the scheme received over 200 applications in its first phase, with nine companies ultimately selected. Nearly half of the projects have entered the implementation stage, involving assets exceeding HK$120 million. This development not only demonstrates the market's innovative vitality but also signifies that Hong Kong is attempting to break through the global predicament of "ambitious blueprints but difficult implementation" in the RWA field through a pragmatic approach—guiding pilot projects with funding and accelerating the closed loop through ecosystem aggregation. As major global financial centers compete in the new digital asset arena, Hong Kong's move has secured a crucial testing ground for the deep integration of blockchain and traditional finance.

I. Global Consensus and Implementation Challenges of RWA: The Gap Between Ideal and Reality

RWA tokenization has been widely regarded as the most important narrative for the next round of blockchain technology empowering the real economy. Its core logic lies in the fact that by transforming traditional assets such as real estate, bonds, commodities, and even intellectual property into on-chain digital certificates, it is expected to achieve asset fragmentation, improved liquidity, and a leap in transaction settlement efficiency. BlackRock CEO Larry Fink has repeatedly stated publicly that tokenization is the future of capital markets. The Bank for International Settlements (BIS) also affirmed the potential of this trend in its 2023 report.

However, globally, several deep hurdles still exist between RWA's conceptual consensus and its large-scale application. The primary challenge stems from the fragmentation of technology and standards. Assets on different protocols and chains struggle to interoperate, creating new "digital silos." Secondly, legal and regulatory certainty is a prerequisite for institutional investment. Issues such as the legal nature of tokenized assets, the order of claims in bankruptcy proceedings, and cross-border jurisdictions are still in the exploratory stage in most jurisdictions. Finally, building a closed-loop business model is exceptionally complex. A successful RWA project requires seamless integration between asset originators, technology platforms, custodians, law firms, auditors, and exchanges; weakness in any link can cause the entire process to collapse. Therefore, small-scale, supervised "pilot projects" have become a crucial first step in breaking through these barriers. They do not pursue immediate trading volume but aim to validate technical solutions in a real-world environment at a controllable cost, clarify compliance boundaries, establish collaborative processes, and build vital market trust. Hong Kong Cyberport's funding scheme precisely addresses this crucial juncture.

II. A Three-Dimensional Analysis of Hong Kong's Strategy: Seeking a Balance Between Sound Regulation and Bold Innovation

Faced with common challenges, Hong Kong's strategy is not simply policy deregulation, but a carefully designed combination of "policy guidance, scenario pilots, and ecosystem empowerment," striving to achieve a balance between financial stability and innovation incentives.

At the policy level, Hong Kong is committed to building a clear and progressive regulatory framework. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) are the two core drivers. In 2023, the HKMA successively released the "Discussion Paper on Regulatory Principles for Tokenized Assets" and the "Legislative Proposal on the Regulatory System for Stablecoins," clarifying the principle of "same risk, same regulation," aiming to define a track for compliant innovation. The SFC has already established a licensing system for Virtual Asset Service Providers (VASPs) and provides clear guidance for fund products investing in virtual assets.

These measures provide a preliminary compliance manual for RWA's core businesses, such as Security Token Offerings (STOs). The Cyberport pilot can be seen as a "stress test" under this top-level design, and its feedback will be directly used to optimize subsequent regulatory details. At the scenario level, the funding program demonstrates a high degree of focus and pragmatism. Applications are concentrated on RWA tokenization, stablecoin payments, and Web3 security—the three cornerstones of RWA's commercial applications: asset on-chaining, value transfer, and security assurance. The maximum funding of HK$500,000 has a greater symbolic and catalytic effect than a full subsidy. It significantly reduces the trial-and-error costs for early-stage entrepreneurs, encouraging them to put their solutions to real-world business pressures for testing, rather than remaining at the technology demonstration stage. At the ecosystem level, Hong Kong is accelerating the aggregation of all elements necessary to achieve a closed loop for RWA. Cyberport has gathered over 300 blockchain-related companies and connected with over 220 investment institutions through its network. This means that a pilot project has the opportunity to quickly connect with technology partners, legal advisors, auditing firms, and potential investors within the same physical and community space. This dense ecosystem network aims to solve the classic "chicken and egg" problem in innovation—without successful cases, the ecosystem is unwilling to invest; without ecosystem support, cases are unlikely to succeed. Hong Kong has strongly launched this positive cycle by building a platform through the joint efforts of the government and the market. III. A Global Testing Ground Tour: Hong Kong's Unique Positioning and Competitive Dimensions Hong Kong is not alone in the global RWA competition. Singapore, the UAE, Switzerland, and other locations are also actively developing their own RWAs, but their paths and advantages differ. Singapore is Hong Kong's most frequently compared competitor. The Monetary Authority of Singapore's (MAS) "Project Guardian" also focuses on asset tokenization pilots, but it emphasizes guiding traditional large financial institutions (such as DBS Bank and JPMorgan Chase) to lead explorations in areas such as wholesale finance markets and cross-border trade, exhibiting a more stable and institutionalized approach. In contrast, Hong Kong's Cyberport plan is more geared towards innovative technology companies, with more diverse scenarios, aiming to cultivate a native digital asset ecosystem, exhibiting a more dynamic and inclusive approach. The UAE (particularly Abu Dhabi and Dubai) attracts global Web3 companies by offering a highly flexible and welcoming regulatory framework through its free zones, leveraging its advantages in regulatory responsiveness and tax incentives. Switzerland, with its long-standing tradition of private banking and clear crypto-asset laws, leads in the integration of cryptocurrency custody and banking services. In this landscape, Hong Kong's unique advantage lies in its irreplaceable "bridge" role: backed by China's massive real economy and asset stock, it connects to open global capital and markets. This advantage means that Hong Kong's RWA experiment can not only test globally applicable scenarios but also delve into unique opportunities related to China, such as exploring innovative structures involving mainland assets or cross-border capital flows, while adhering to compliance. This strategic depth is something Singapore or the UAE lack. IV. Glimpsing the Future: Pilot Program Deepening, Bridge Strengthening, and Ecosystem Evolution Based on the success of the first phase and the global competitive landscape, the future path of Hong Kong's RWA development is already becoming clear. The pilot program will evolve towards greater complexity and broader scope. The second phase is expected to encourage more comprehensive cross-border and cross-industry pilot programs. For example, exploring the full digitization and automation of letters of credit, bills of lading, and payment flows in international trade; or experimenting with the tokenization of movable property pledge financing combined with IoT data (such as warehouse logistics monitoring). The pilot program will also place greater emphasis on integration testing with traditional financial infrastructure, such as exploring how tokenized assets can interact with Hong Kong's Faster Payment System (FPS) and the potential future digital Hong Kong dollar (e-HKD). Hong Kong's "super-connector" function will be unprecedentedly strengthened. RWA is expected to become a new channel connecting the mainland and international markets. A potentially massive scenario is exploring tokenized fundraising in Hong Kong for qualified global investors using mainland infrastructure assets with stable cash flow (such as smart parks, logistics hubs, and clean energy projects) through compliant legal structures (such as SPVs). This requires Hong Kong's ecosystem to possess not only technological capabilities but also a thorough understanding of the legal, accounting, and regulatory logic of both regions. Global competition will enter a phase of balancing comprehensive ecosystem strength. Future competition will move beyond simply comparing regulatory leniency to a contest of ecosystem integrity, depth of professional services, and market potential. Hong Kong needs to consolidate its traditional advantages in high-end service industries such as law, accounting, and tax consulting, and cultivate more interdisciplinary talent familiar with both blockchain and traditional finance. The key to its success will be the ability to create a number of internationally influential RWA success stories and export replicable models and standards. V. The Ultimate Goal of RWA is a Triumph of Trust and a Mature Ecosystem. Cyberport's pilot funding program, like a meticulously designed "stress test," examines far more than just blockchain technology itself; it tests the preparedness of the entire social and financial system to accept a new paradigm. It reveals a fundamental principle: the success of RWA is essentially a composite product of institutional innovation, technological integration, and ecosystem collaboration. Hong Kong's current path—laying the foundation with a clear and dynamically adjustable policy framework, guiding real-world scenario verification with precise funding, and gathering and catalyzing resources through a platform-based ecosystem—reflects a highly pragmatic systems engineering mindset. It does not shy away from obstacles but systematically identifies, dismantles, and overcomes them by constructing a "miniature" version of the real world. For global observers, Hong Kong's testing ground is of immense value. It will continue to answer a series of key questions: Which asset classes will be the first to successfully complete the entire process? What legal framework best balances efficiency and security? How can the ultimate concerns of institutional investors be addressed? These answers, gleaned from practical experience, will not only shape the future of Hong Kong as an international digital asset center but also provide crucial Asian experience and wisdom for the healthy development of global RWA. Ultimately, when trust is firmly established through countless successful interactions, and when the ecosystem matures by solving real-world problems, the grand narrative of RWA will truly transcend the fluctuations of the financial cycle, evolving from a fervent concept into a solid force reshaping the global asset landscape.