One License Unlocks HKD 23.4 Billion Surge: Unpacking Hong Kong’s Ambitions as a Global Virtual Asset Hub

On the evening of June 24, Guotai Junan International (01788.HK) announced it had received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its Type 1 and Type 4 licenses to include virtual asset (VA) services. This allows the firm to provide clients with virtual asset trading through licensed platforms and omnibus accounts. The next morning, the company’s share price surged over 80% at market open and climbed further to close with a 198.39% increase, raising its market capitalization by HKD 23.4 billion in a single day. However, the stock price declined in the following two trading sessions.

While market speculation appears to have driven the sharp increase in valuation, it reflects broader expectations surrounding Hong Kong’s ambitions to become an international hub for virtual assets. Guotai Junan International is not the first local brokerage to upgrade its license; others, such as Victory Securities and Eddid Securities, have already completed similar enhancements. These brokers typically act as distribution channels, rather than operating proprietary exchanges like Coinbase. By opening omnibus accounts on licensed platforms, they provide access to compliant tokens such as Bitcoin and Ethereum, excluding high-risk altcoins. Participation remains restricted for mainland China residents.

Market enthusiasm is fueled by anticipated growth in brokerage commissions and trading income. With digital assets characterized by high volatility and frequency, brokerages expect to capture value through high-turnover trades. Additional services such as asset custody and cold wallets can enhance platform retention. The future potential of crypto-linked financial products, such as structured notes or ETNs, also represents a revenue opportunity, especially among younger and high-net-worth investors.

According to the SFC, 41 institutions in Hong Kong have adopted the omnibus account arrangement to offer virtual asset trading. While the SFC oversees trading activity, payment-related elements such as stablecoins and the digital Hong Kong dollar fall under the jurisdiction of the Hong Kong Monetary Authority (HKMA).

Despite the surge in activity, speculative sentiment remains prominent. Many participating brokerages are connecting to licensed exchanges in Hong Kong, which still face limitations in token variety, market depth, and liquidity compared to international platforms like Binance or Coinbase. Local exchanges, constrained by tight regulation and limited listings, have struggled to achieve profitability, particularly due to the exclusion of ICOs and high-risk assets.

Nevertheless, licensed platforms in Hong Kong offer enhanced security and regulatory oversight, including strict AML and KYC protocols, professional asset custody, insurance coverage, and rigorous asset listing standards. For new investors, accessing digital assets through licensed brokerages may be more intuitive than using global platforms directly.

In parallel, Hong Kong’s stablecoin ecosystem is advancing with new regulations scheduled to take effect on August 1. Technology firms and traditional financial institutions have shown strong interest, including JD Chain, Circle Innovations, the Standard Chartered–HKT consortium, Ant International, and Ant Digital Technologies. Drawing on the success of USDC—co-developed by Circle and Coinbase—distribution infrastructure is seen as key to stablecoin success. In Hong Kong, institutions with Type 1 licenses and licensed exchanges are expected to become central to distribution.

Stablecoins are also expected to play a role in trading and tokenizing real-world assets (RWA). The USDC model, which emphasizes compliance, transparency, and auditability, has been positioned as a reference point. With Circle managing issuance and custody and Coinbase handling early-stage distribution, the USDC ecosystem supports multi-chain deployment, payments, settlement, and tokenized financial services. Its use in global remittances and tokenized treasury products demonstrates its integration with the real economy.

Chinese firms are also eyeing the sector. JD.com’s founder Richard Liu stated the company aims to obtain stablecoin licenses in major currency jurisdictions, targeting a 90% reduction in cross-border payment costs and sub-10-second settlement speeds. This strategy reflects a new effort to reenter the payments sector, particularly as traditional cross-border systems such as CIPS remain dominant but face limitations in cost and efficiency. Stablecoins, with their blockchain-based infrastructure, offer real-time, peer-to-peer global value transfer.

The release of Hong Kong’s "Policy Statement 2.0 on the Development of Virtual Assets" on June 26 further reinforced the city’s Web3 ambition. Compared to the 2022 version, the new policy framework introduces a comprehensive structure under the “LEAP” strategy, advancing regulatory compliance, tokenization, scenario development, and talent pipelines. Three major policy updates include the formal licensing of stablecoins starting August 1, the prioritization of tokenized RWAs such as gold and green energy, and tax exemptions for tokenized ETFs and digital asset funds.

The revised policy aims to improve market liquidity and efficiency, previously seen as weak points. Notably, the exemption of stamp duty for secondary trading of tokenized ETFs is designed to encourage product turnover. Tokenized money market ETFs, which may offer stablecoin users short-term yield, have faced low transaction volumes due to cost barriers. Removing stamp duties could enhance liquidity and user adoption.

Industry experts suggest that this policy shift signals Hong Kong’s intent to make Web3 infrastructure a formal part of its financial ecosystem. Plans to tokenize tangible assets—including commodities, clean energy, and logistics—suggest a transformation at the asset level. Stablecoins and RWA tokenization are seen as bridging native blockchain assets with traditional systems, enabling the emergence of “digital twins.” These digitized, on-chain versions of real-world assets may soon drive a new phase of Web3 development, where regulatory clarity becomes the entry ticket.

However, realizing this vision will take time. Challenges remain in legal frameworks, valuation standards, liquidity mechanisms, and the actual transparency of tokenized assets. Balancing blockchain’s borderless nature with real-world regulatory compliance, including KYC and AML, will be a central issue in policy design