Hong Kong is RWA Interconnection Alliance Anchoring Web3 International hub status!

Leveraging the advantages of ‘one country, two systems’ and its heritage as an international financial centre, Hong Kong is actively expanding international Web3 cooperation. By spearheading the establishment of the ‘RWA Interoperability Alliance’ to lead the formulation of cross-border asset transaction standards, it is steadily building a pivotal hub connecting mainland and international Web3 markets.

Real-world asset tokenisation (RWA), as a core application of Web3, offers a novel pathway for digitising traditional assets. Traditional assets such as bonds, real estate, and artworks commonly suffer from insufficient liquidity, high transaction barriers, and numerous cross-border circulation obstacles. Tokenisation technology enables their fragmentation into standardised digital tokens, facilitating efficient, transparent, and low-cost cross-border transactions. Capitalising on this potential, Hong Kong spearheaded the formation of the ‘RWA Interoperability Alliance,’ uniting regulators from multiple jurisdictions and leading Web3 projects to overcome cross-sector regulatory divergences and technical barriers.

Under this framework, Hong Kong is spearheading the establishment of cross-border transaction standards for multiple asset classes: for bonds, developing unified rules for tokenised issuance, custody, and settlement to resolve issues such as inconsistent credit ratings and prolonged cross-border settlement cycles; for real estate, exploring smart contract-based property registration and transaction processes to enable cross-border transfer and swift settlement of property tokens, thereby lowering investment barriers; For artworks, it focuses on digital rights verification and traceability technologies, leveraging blockchain to create tamper-proof digital identities, thereby resolving challenges in authenticity verification and property rights disputes.

Multinational regulatory coordination serves as the cornerstone for the alliance's advancement. The cross-border nature of Web3 necessitates global regulatory cooperation for its development. Leveraging its international financial regulatory expertise, Hong Kong facilitates dialogue to foster consensus among nations on RWA access standards, investor protection, and anti-money laundering compliance. This approach mitigates financial risks while providing clear guidance for the sector's healthy development, thereby attracting greater participation from compliant projects.

‘One Country, Two Systems’ constitutes Hong Kong's core advantage in spearheading international Web3 cooperation: on one hand, as an independent customs territory and international financial centre, its mature legal framework and environment of free capital flow enable seamless integration with global Web3 resources; on the other, backed by the vast economic scale of the Mainland, it bridges abundant real-world assets with market demand, functioning as a ‘converter’ for Mainland assets entering the global Web3 market.

Concurrently, Hong Kong is emerging as a two-way circulation hub between mainland and international Web3 markets: international projects can leverage Hong Kong to access mainland demand for asset digitisation, while mainland enterprises and investors can engage in compliant international RWA collaborations here, accumulating global experience. This dynamic will propel Hong Kong's Web3 industry prosperity and facilitate the optimal allocation of global Web3 resources.

Looking ahead, as the ‘RWA Interoperability Alliance’ advances and standards are implemented, Hong Kong's position as an international Web3 hub will be further consolidated. Amid accelerating global collaboration, Hong Kong is leveraging RWA as a breakthrough to transform from a traditional financial centre into a digital economic stronghold, offering unique solutions for global Web3 development.