Trump's Crypto Assets Trends Spark Global Follow, Tokenization Wave Sweeps the Financial Sector

Trump recently announced the issuance of his personal meme coin $Trump on social media, once again drawing the attention of global investors to the Crypto Assets market. If he returns to the White House, Trump may usher in a new era of crypto regulation in the U.S., encouraging more institutions to dive into the wave of crypto innovation. Industry insiders say this move sends a clear signal to other countries: the U.S. is ready to lead this industry, and others may fall behind if they do not keep up.

Tokenization: A Revolutionary Change in Asset Management

Tokenization is gradually moving from concept to practice, known as "the third revolution in asset management." It is expected that this field will experience explosive growth in the next five years. Research institutions predict that by 2025, the scale of non-stablecoin tokenized assets will exceed $30 billion.

As one of the global financial centers, Hong Kong is also actively embracing this trend. The policy address for 2024 proposes to promote the tokenization of assets and the construction of a digital currency ecosystem. The Hong Kong Monetary Authority has launched the "Digital Bond Financing Scheme" to encourage the capital market to adopt tokenization technology. These measures indicate that Hong Kong hopes to reshape its financial competitiveness through tokenization and take a proactive position in future competition.

The United States Leads Global Tokenization Innovation

Currently, the main driving force behind global tokenization innovation comes from the United States. Wall Street institutions are promoting the flow of traditional funds into the blockchain through Bitcoin spot ETFs, while also leveraging tokenization technology to accelerate the on-chain process of traditional financial assets and businesses. Several well-known financial institutions are initiating the first wave of tokenization, which will have a global impact. A large asset management company's tokenized fund for U.S. Treasury bonds has exceeded $630 million, and another large bank is leading the tokenization process of traditional assets such as U.S. Treasury bonds and money market funds through its platform.

In contrast, Hong Kong has yet to see the emergence of institutions or projects with global influence in the field of tokenization. Although Hong Kong has been proactive in policy promotion, the participation of traditional financial institutions in Hong Kong is relatively low compared to the innovation model led by major financial institutions in the United States, which still maintains a cautious attitude towards the Web3 industry and remains largely in a wait-and-see state. This means that while Hong Kong has abundant financial resources, its potential in tokenization innovation has not been fully realized.

Suggestions for Developing the Tokenization Market in Hong Kong

1. Establish an open tokenization sandbox mechanism to attract more traditional institutions to participate in innovative practices.
2. Incorporate the exploration of stablecoins, distributed ledger technology, and other related areas into the sandbox for joint pilot projects to avoid sandbox fragmentation.
3. Encourage institutions to freely explore tokenization applications based on their own advantages, including various assets such as funds, stocks, etc.
4. Focus on standardized financial assets, such as bonds and funds, to rapidly expand the tokenization market scale.
5. Utilize Hong Kong's advantages as an international financial, trade, and shipping center, with a focus on tokenization applications in trade and cross-border scenarios.
6. Explore tokenization applications and innovations on public chains more actively, under the premise of compliance.

Conclusion

Tokenization, as a product of the integration of traditional finance and blockchain technology, ideally promotes the migration of real assets onto the chain while allowing their value to serve and feedback to the real world. In the face of global financial institutions' active actions in the field of tokenization, Hong Kong needs to seize the opportunity and accelerate innovation. If it can balance innovation and regulation, and fully utilize the asset support from the mainland, Hong Kong is expected to establish significant advantages in the field of tokenization. Research indicates that the potential scale of tokenized assets in Hong Kong could reach up to 36 trillion HKD. We look forward to Hong Kong achieving breakthrough developments in the field of tokenization by 2025.