Hong Kong has positioned itself as a forward-thinking hub for digital assets and Web3.0 innovation. With strong governmental support and a clear regulatory framework, the city is attracting significant investment and participation from publicly listed companies. This article explores how Hong Kong’s policies and corporate strategies are shaping the future of decentralized finance (DeFi) and virtual assets.
Policy Support: Building a Global Virtual Asset Hub
The Hong Kong Special Administrative Region government has identified Web3.0 and virtual assets as core to revitalizing its financial competitiveness. In 2023, the government released a policy declaration on virtual assets, explicitly supporting industry innovation. This was followed by the establishment of the cross-industry "Hong Kong Web3.0 Association" and the "Web3 Hub Fund," led by Financial Secretary Paul Chan, to attract global enterprises.
By 2024, the Securities and Futures Commission (SFC) further tightened the regulatory framework, implementing a dual licensing system for virtual asset trading platforms. Operators were required to comply during a transition period, with seven institutions already granted formal licenses and 18 others applying.
Hong Kong is also exploring the issuance of an official stablecoin, the "digital Hong Kong dollar" (e-HKD). This initiative aims to provide an anchor asset for the virtual economy and enhance cross-border payment capabilities. Financial Secretary Paul Chan stated that this would not only strengthen the Hong Kong dollar’s status but also offer an external interface for China in international finance, mitigating risks associated with the SWIFT system.
Collaboration with mainland China includes testing cross-border payments with the digital yuan and advancing projects for central bank digital currency (CBDC) interoperability, bridging virtual assets with traditional finance.
Listed Companies Dive In: From Tech Infrastructure to Ecosystem Growth
Driven by policy incentives and technological advancements, companies listed on the Hong Kong Stock Exchange are accelerating their entry into the Web3.0 space. Their involvement spans trading platforms, data analytics, asset tokenization, and more.
OSL Group (0863.HK), as Hong Kong’s first licensed virtual asset trading platform, reported a 79% year-on-year revenue increase to HKD 375 million in 2024. Its digital asset trading volume exceeded HKD 100 billion, with technical infrastructure business revenue surging by 415%, thanks to expansions in SaaS services and custody operations. The company’s stock price rose by over 10% in a single day in October 2024, reflecting market optimism about its leading role in compliant trading and ETF custody.
Similarly, Mei Technology (8198.HK) attracted market attention with its strategic Web3.0 moves. In March 2025, the company completed a new share placement, raising approximately HKD 33.23 million, with 35% allocated to Web3.0 technology R&D and exploring new opportunities. This includes developing DEX aggregators and on-chain data analytics platforms. Leveraging its experience in big data center operations, Mei Technology aims to build robust data parsing infrastructure using FPGA hardware acceleration and support for Move VM 2.0 and FuelVM. Since the start of 2025, its stock price has surged over 600% from HKD 0.25.
Other listed companies like Boyaa Interactive (0434.HK), Victory Securities (8540.HK), and Lanke Interactive (8267.HK) have also made strides in cryptocurrency, experiencing notable stock price increases.
Global DEX Market Boom: Record Trading Volume and Capital Inflow
Decentralized exchanges (DEX) are central to Web3.0’s growth, experiencing explosive expansion. For instance, BNB Chain (BSC) recorded a 24-hour DEX trading volume of USD 2.61 billion, with leveraged contract trading exceeding USD 93.47 million. Daily net capital inflow reached USD 28.1 million, and active addresses surpassed 1.21 million. Leading protocols like PancakeSwap generated daily fee income of USD 1.38 million, highlighting strong market liquidity and user engagement.
DEX growth is not solely driven by retail traders; institutional participation is also rising. The approval of Bitcoin spot ETFs in the U.S. and similar products in Hong Kong (with a total size of HKD 2.35 billion) has created channels for traditional capital to enter the crypto market. Mei Technology, through its self-developed RWA underlying protocol and 404 protocol, combines traditional financial expertise to map off-chain assets to on-chain assets, enabling seamless blockchain asset issuance, transfer, cross-chain, and trading.
The company expressed confidence in its annual report: "We believe the growing market demand is still unsaturated, and the development of such platforms will position us as a pioneer, capturing potential market share in Web3.0-developed regions before any dominant players emerge."
However, when contacted for comments, Mei Technology representatives declined, citing disclosure regulations for listed companies.
Industry Outlook: Compliance and Technological Innovation
Hong Kong’s Web3.0 blueprint results from proactive policies and market-driven innovation. Professor Wang Yang, Vice-President of the Hong Kong University of Science and Technology, noted that real-world asset (RWA) tokenization would be the fastest-growing sector in 2025, with its core logic of enhancing asset liquidity and reducing transaction costs gaining recognition from traditional institutions.
On the regulatory front, Hong Kong continues to refine its Anti-Money Laundering Ordinance and advance stablecoin legislation. Trading platforms are required to implement on-chain compliance tools, such as Onchain AML, for 24/7 risk monitoring. Meanwhile, the Web3 Hub Fund and e-HKD initiative are expected to attract more technical talent and capital, upgrading the ecosystem from an experimental zone to a global hub.
Today, Hong Kong listed companies are adopting diverse strategies to capture opportunities in the virtual economy. With the dual drivers of policy support and technological innovation, Hong Kong is poised to become a key nexus connecting traditional finance with the digital future in the global Web3.0 race.
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Frequently Asked Questions
What is a DEX?
A decentralized exchange (DEX) is a platform that allows users to trade cryptocurrencies without intermediaries, using smart contracts and blockchain technology for secure and transparent transactions.
Why are Hong Kong listed companies investing in Web3.0?
Companies are leveraging supportive government policies, regulatory clarity, and growing market demand to gain early-mover advantages in emerging sectors like DeFi, tokenization, and digital asset management.
How does RWA tokenization work?
Real-world asset (RWA) tokenization involves converting physical or financial assets into digital tokens on a blockchain. This process enhances liquidity, reduces transaction costs, and enables fractional ownership.
What is the significance of Hong Kong’s dual licensing system?
The dual licensing system by the SFC ensures that virtual asset trading platforms meet strict compliance and security standards, fostering a safer and more reliable environment for investors and operators.
Are there risks associated with investing in Web3.0 projects?
Yes, risks include market volatility, regulatory changes, and technological uncertainties. Investors should conduct thorough research and consider professional advice before participating.
How can traditional investors access the crypto market?
Traditional investors can gain exposure through Bitcoin ETFs, tokenized assets, and regulated trading platforms, which provide bridges between conventional finance and digital assets.