RWA and Stablecoins

Two Landmark Moves Shaping Hong Kong’s Digital Asset Landscape

In August 2025, Hong Kong issued two major policy signals within a single week concerning digital asset regulation and industry development:

• August 1 – The Stablecoin Ordinance took effect, requiring any stablecoin issued in Hong Kong or pegged to the Hong Kong dollar to be licensed and fully compliant with KYC, AML, and capital adequacy requirements.
• August 7 – The Hong Kong Web3 Standardization Association, in partnership with The Hong Kong Polytechnic University, released the 2025 RWA Industry Development Report – Industrial Chapter, the first systematic proposal on standards, priority sectors, and implementation models for real-world asset (RWA) tokenization.

These two moves are closely aligned: the former lays the compliance foundation for digital asset settlement, while the latter provides a roadmap for the tokenization, verification, and circulation of diversified real-world assets.

China: Stablecoins as Core Infrastructure Driving Multi-Sector RWA Industrialization

The RWA Industry Development Report makes clear that China’s focus is not on tokenizing all assets indiscriminately, but rather on selecting those with stable value, clear legal rights, and verifiable off-chain data. It identifies five priority sectors:

• Financial assets (bonds, gold, funds)
• New energy assets (solar PV, EV charging infrastructure)
• Real estate (income-generating hotels, commercial property)
• Intangible assets (carbon credits, data, intellectual property)
• Computing power assets (GPU and AI computing resources)

Under this model, stablecoins are not just a means of payment and settlement but the core infrastructure linking tokenized assets. The strategy aims to build a digital value network, interoperable yet independent from existing international clearing systems, to support green energy, the data economy, and advanced manufacturing in global trade and capital flows.

In effect, China is seeking a deep integration of digital finance with the real economy ensuring digital assets not only serve financial transactions but also reflect and support actual productive capacity and resource allocation.

United States: Stablecoins as a Digital Extension of the Financial System

By contrast, the GENIUS Act, passed in July 2025, focuses on ensuring the compliance and secure operation of stablecoins. Key provisions include:

• Limiting issuers to regulated banks, credit unions, or approved non-bank institutions
• Mandating 1:1 reserves in USD or short-term Treasuries, with regular reserve disclosures
• Establishing bankruptcy protections prioritizing stablecoin holders
• Strict enforcement of AML, CFT, and sanctions compliance
• Prohibiting misleading marketing practices

This framework aims to ensure that stablecoins operate safely and transparently, reinforcing the existing USD settlement and debt markets. Unlike China’s multi-sector RWA tokenization approach, the U.S. positions stablecoins as a digital complement to its current financial infrastructure.

The divergence stems from structural differences: the U.S. relies on its dominant capital markets, technology platforms, and service industries, with the USD already entrenched as the global reserve currency removing the need for large-scale on-chain tokenization of physical assets.

China–U.S. RWA Strategy Comparison

China emphasizes integrating digital finance with the real economy; the U.S. focuses on reinforcing the adaptability and security of its existing financial system.

Europe & Switzerland: Untapped Strategic Potential

The EU and Switzerland introduced digital asset legislation before the U.S. and China, but have yet to elevate stablecoins and RWAs to strategic priorities. MiCA’s scope is defensive, while FINMA’s functional, case-by-case approach is primarily service-oriented.

However, Europe holds strong advantages: a complete manufacturing base, and two globally significant currencies the euro and Swiss franc. A well-crafted RWA strategy could:

• Monetary level: Anchor digital settlement systems to the euro, ensuring currency independence and global reach.
• Industrial level: Tokenize key assets in green energy, advanced manufacturing, aerospace, and life sciences for efficient, global rights verification and circulation.

Such a framework could sustain Europe’s manufacturing advantage, safeguard the euro’s settlement role against USD stablecoins, and enhance its influence in setting international rules.

Proposed EU RWA Policy Framework

Core Concept: Euro Anchor + Industry Focus

• Policy Role: Euro-pegged compliant stablecoins as settlement hubs, alongside targeted industry RWA initiatives.
• Asset Scope: Green energy & grid assets, high-end manufacturing (automotive, equipment, industrial control), aerospace, life sciences, infrastructure, and financial assets.
• Strategic Goals: Maintain euro independence in digital settlement; enhance global verification and circulation of industrial assets.
• Industry Support: Manufacturing & research base, Green Deal, sovereign data & privacy regulations.
• Regulatory Features: Align with MiCA; unified EU RWA classification and disclosure standards; cross-border recognition and audit guidelines; GDPR-aligned data privacy compliance.
• Defensive Measures: Prioritize euro use in domestic payment scenarios to prevent structural erosion from USD stablecoins.
• Roadmap:
  1. Licensing and clearing platform for euro-pegged stablecoins; central banks/major banks for custody and redemption.
  2. RWA pilots in energy, manufacturing, and infrastructure (with measurable yields and clear rights).
  3. Cross-border recognition and secondary liquidity markets; interoperability agreements with partner economies, especially Switzerland.