“LEAP” Framework Unveiled: Hong Kong’s Bold Agenda for Digital Asset Integration

On June 26, the Hong Kong Special Administrative Region (HKSAR) Government released the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong, reinforcing its commitment to becoming a global leader in digital asset innovation. Building on the original 2022 policy declaration, this new release introduces a clear, actionable framework—LEAP—that will enable tokenization, institutional adoption, and real-economy integration of digital assets.

Aligned with Hong Kong’s broader financial innovation agenda, the LEAP framework is designed to shape a secure, transparent, and competitive ecosystem that bridges traditional finance with emerging digital infrastructure.

The LEAP Framework: Strategic Priorities for Ecosystem Maturity

Hong Kong’s new direction is defined by the LEAP framework, which outlines four interconnected pillars:

• L – Legal and Regulatory Streamlining
  
• E – Expanding the Suite of Tokenized Products
  
• A – Advancing Use Cases and Cross-Sectoral Collaboration
  
• P – People and Partnership Development
  

Together, these pillars aim to position Hong Kong at the forefront of regulated, utility-driven digital finance.

L: Legal and Regulatory Streamlining

1. Unified Licensing Regime for Service Providers

Hong Kong is establishing a comprehensive licensing regime for digital asset service providers, including trading platforms, custodians, stablecoin issuers, and intermediaries. Public consultation will soon begin on the licensing mechanism for trading and custody services.

• The Securities and Futures Commission (SFC) will serve as the lead licensing body.
  
• The Hong Kong Monetary Authority (HKMA) will oversee banking-related digital asset activities.
  

2. Regulatory Framework for Tokenized Real-World and Financial Assets

To unlock the full potential of tokenized assets, the FSTB and HKMA will assess the legal and regulatory treatment of real-world assets (RWA) and financial instruments. This initiative will draw from global practices and aims to promote secure, compliant adoption at scale.

Additionally, Hong Kong will continue aligning with international standards, including:

• IOSCO’s crypto policy recommendations
  
• FSB’s global crypto asset framework
  
• Basel Committee guidelines on crypto exposures
  
• OECD’s Crypto-Asset Reporting Framework
  

E: Expanding the Suite of Tokenized Products

3. Institutionalising Tokenised Government Bonds

Following two successful pilot issuances of tokenized green bonds totaling HKD 6.8 billion, Hong Kong will make tokenized government bonds a routine financing tool. Further engagement will focus on:

• Integrating digital currencies to improve settlement efficiency
  
• Developing secondary markets
  
• Broadening investor access to local bond markets
  

4. Scaling RWA and Financial Asset Tokenization

Via Project Ensemble, the HKMA is advancing tokenization of traditional financial products and real-world income-generating assets, such as EV charging stations. It is also exploring interbank tokenized deposit settlement infrastructure to enhance liquidity and simplify workflows.

Hong Kong will further explore:

• Tokenization of commodities (e.g., gold, base metals)
  
• Renewable energy asset tokenization (e.g., solar panels)
  
• Stamp duty exemptions for tokenized ETFs traded on regulated platforms
  

The city’s new designation as a licensed delivery point in the London Metal Exchange (LME) warehouse network also paves the way for a tokenized commodities ecosystem using asset tracking technologies.

A: Advancing Use Cases and Cross-Sectoral Collaboration

5. Stablecoin Licensing and Payment Use Cases

A licensing regime for stablecoin issuers will go live on August 1, 2025. The Government sees strong demand from cross-border trading enterprises seeking cost-effective, real-time settlement using stablecoins. Regulatory support will focus on enabling real-world adoption through clear guidelines and safeguards.

6. Innovation Support through Grants and Infrastructure

Cyberport will launch a Blockchain and Digital Asset Pilot Grant Scheme to support high-potential projects with market relevance. Resources include:

• Technical mentorship
  
• Industry expertise
  
• Business matching and acceleration programs
  

Meanwhile, InvestHK will support digital asset firms in setting up or scaling in Hong Kong, connecting them with local banks, legal advisors, and infrastructure partners. The HKEX has also launched the city’s first BTC and ETH digital asset indices to provide institutional-grade price benchmarks in the Asia time zone.

Ongoing efforts will focus on regtech, cybersecurity, and compliance systems co-developed with regulators and law enforcement to ensure a secure, trustworthy ecosystem.

About Starlabs Consulting

Starlabs Consulting is a global leader in strategic and marketing consulting for the Web3 industry. Founded in 2018, we specialize in delivering end-to-end solutions across strategic planning, financial advisory, PR and marketing, risk forecasting and management, regulatory and legal compliance, crisis management, and innovation research.

We are committed to helping visionary companies navigate complexity in their growth, marketing, and operations — empowering them to thrive in competitive markets. With deep Web3 expertise and an extensive global network, Starlabs Consulting is the trusted partner of choice for many of the world’s leading crypto exchanges. Our professional team is known for its strategic insight, execution excellence, and unwavering client commitment, earning us a strong reputation across the industry.

Website: https://www.starlabsconsulting.com/