What Is the Purpose Here?

The goal is to conduct real money transactions on the blockchain. This program first started in 2024 on a metaverse project known as SandBox. Tokenized deposits tested in this environment will now carry real transaction value. The Hong Kong Monetary Authority (HKMA) takes this highly seriously. The initial focus will be on high-volume financial areas, and the first phase will include:

• Tokenized money market fund transactions,

• Real-time liquidity management,

• Treasury operations

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In particular, settlement transactions will initially be conducted through the Hong Kong Dollar RTGS system. The intended goal is to transform the existing system into a 24/7 structure that is compatible with tokenized central bank money.

HKMA CEO Eddie Yue emphasized that many of the technologies developed within the SandBox environment have now entered the market and are being actively used. It was especially highlighted that interoperability is critical for assets undergoing tokenization.

Asian Market Heats Up With These Moves!

Hong Kong’s tokenization initiative naturally triggers competition among the major financial hubs in Asia. Singapore also seems to be preparing to take its place in this race. The country recently expressed its intention to expand its tokenized securities and CBDC trials.

The Kinexys platform by DBS and JP Morgan is also working on cross-chain tokenized deposit transfers.

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Details of the New Regulation

The Securities and Futures Commission (SFC) of Hong Kong issued two new circulars on Monday, granting local crypto exchanges permission to operate via a shared order book system with overseas trading platforms.

This decision represents a significant shift away from Hong Kong’s previously strict trading framework, which only permitted pre-funded, domestically settled transactions within the region. Under the new system, SFC-licensed exchanges will be able to access global order books, increasing liquidity and price competitiveness in the market. However, the SFC emphasized that exchanges must obtain prior written approval before joining such integrations. Each application will be reviewed based on security, investor protection, and data-sharing standards.

SFC Chief Executive Leung: “We Aim to Integrate With Global Markets”

During Hong Kong Fintech Week, SFC CEO Julia Leung explained the purpose of the new policy:

“This integration will enable local investors to benefit from better price discovery and more competitive trading opportunities. It will also allow Hong Kong exchanges to effectively tap into global market liquidity.”

Leung also stressed the need to balance regulatory flexibility with financial stability:

“Overly stringent requirements risk driving liquidity and talent to jurisdictions with softer regulations. But weak oversight undermines trust and stability.”

The second circular issued by the SFC introduced a key exemption for token and stablecoin projects licensed by the Hong Kong Monetary Authority (HKMA). Under the new rule, tokens intended for professional investors will no longer be required to have a 12-month trading history prior to listing — a move expected to ease operations for new stablecoin issuers and blockchain-based financial institutions.

A New Era in Hong Kong’s Crypto Strategy

Hong Kong is reshaping its crypto policies amid growing global regulatory competition. Since U.S. President Donald Trump’s return to office, the rise of pro-crypto rhetoric in Washington has encouraged Asian financial centers to reposition themselves strategically. Hong Kong now aims to create a licensed, regulation-friendly environment for crypto exchanges, stablecoin issuers, and Web3 startups.

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ChinaAMC’s Solana ETF Officially Launches

The Hong Kong Securities and Futures Commission (SFC) granted formal approval for the ChinaAMC Solana ETF (Ticker: 3460) on October 17. Following that approval, the ETF was officially listed and began trading on October 27 on the Hong Kong Stock Exchange.

This ETF provides investors with regulated and direct exposure to Solana’s (SOL) price performance, making it the first officially approved Solana investment product in the region.

According to ChinaAMC’s official statement, the ETF carries an annual management fee of 0.99%.

• Primary Custodian: BOCI-Prudential Trustee Limited
• Sub-Custodian & Trading Infrastructure Provider: OSL Digital Securities

OSL also provides the virtual asset trading platform infrastructure, ensuring that the ETF operates under strict compliance and institutional-grade custody standards.

A First in Asia: Solana ETF Receives Regulatory Approval

The ChinaAMC Solana ETF has officially become the first spot Solana investment product approved by Hong Kong’s financial regulators, marking a new era for the region’s crypto markets.

The Hong Kong Securities and Futures Commission (SFC) granted the approval at a time when the U.S. Securities and Exchange Commission (SEC) continues to review similar applications for Solana and other altcoin ETFs. However, the SEC’s decision-making process has been delayed due to ongoing government-related holdups in the United States.

Solana Price Update

As of today, Solana (SOL) is trading at $204, up 0.28% in the past 24 hours. With a market capitalization of approximately $100.6 billion, Solana remains the sixth-largest cryptocurrency globally. Analysts believe the launch of the ETF could boost medium-term demand for SOL and strengthen institutional interest in the Solana ecosystem.

Hong Kong Strengthens Its Leadership in Digital Finance

The launch of the ChinaAMC Solana ETF reinforces Hong Kong’s vision of becoming a leading hub for regulated digital asset finance. This development not only diversifies the crypto ETF market but also creates a new liquidity channel for the Solana ecosystem across Asia.

With the U.S. still delaying similar ETF approvals, Hong Kong has effectively taken a step ahead in the global crypto ETF race. According to experts, this milestone could serve as a turning point for broader institutional access — not just for Solana, but for the entire altcoin market.

Market Expectations: $1.5 Billion Inflows Anticipated for Solana ETFs

JPMorgan analysts predict that Solana ETFs could attract approximately $1.5 billion in net inflows during their first year of trading. This figure represents about one-seventh of the first-year performance of Ethereum spot ETFs.

Despite Solana’s smaller DeFi total value locked (TVL) compared to Ethereum, analysts emphasize that the network’s high transaction throughput and growing institutional interest could drive a strong initial performance for the new ETF products. If these projections materialize, Solana’s ETF launch could become one of the most successful altcoin-based fund debuts to date, potentially solidifying its position as a top institutional-grade blockchain asset in 2025.

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Hong Kong Emerges as a New Leader in Crypto Regulation

Hong Kong’s decision marks a major paradigm shift in Asia’s crypto regulatory landscape. Following the approval of Bitcoin ETFs in the U.S., this move strengthens Hong Kong’s ambition to become a strategic global center for crypto finance. Officials expect the launch of the Solana ETF to bring a significant inflow of capital, which may lead to short-term volatility in the $SOL price.

“Hong Kong’s approval of the Solana ETF will increase regional competition and position Asia as a global leader in digital asset investment.”
— According to financial analysts, the ETF approval highlights the growing strength of crypto-friendly regulation across Asia.

Solana: Speed, Efficiency, and Institutional Access

Solana stands out as a high-performance blockchain known for its exceptional transaction speed and low fees. Thanks to this newly approved ETF, investors can now gain direct exposure to Solana without the need for owning tokens directly. Investing through ETFs eliminates custody risks and the need for technical expertise, making crypto investments accessible to a broader range of investors.

Analysts note that such products enhance asset liquidity, reduce risks, and provide indirect exposure opportunities for retail investors. This could further accelerate Solana’s growth not only in DeFi, but also in NFT and Web3 ecosystems.

Regional Impact and Regulatory Outlook

Hong Kong’s approval of the Solana ETF is being seen as a model for other Asian countries. Experts predict that regions such as Singapore, Taiwan, and South Korea may soon follow suit by approving similar products, potentially sparking a regional ETF wave.

However, some analysts warn that the process may not be entirely smooth. Anti–money laundering (AML) regulations and international compliance requirements could influence product design and market accessibility.

“This marks a major shift in Hong Kong’s approach to crypto assets. However, regulatory uncertainties could slow the product’s widespread adoption.”
— Regulatory Expert Commentary

A New Era for the Crypto Market

Hong Kong’s approval of the first spot Solana ETF represents a historic milestone, not only regionally but also on a global scale. This decision strengthens the legitimacy of digital assets and bridges the gap between traditional finance and crypto.

According to experts, this approval injects optimism and confidence not just into Solana, but into the entire cryptocurrency sector. With the ETF’s launch, institutional interest in crypto across Asia is expected to accelerate significantly.

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A Response to Rising Interest

The decision comes amid a rapid increase in domestic investor interest in stablecoins. While authorities acknowledge that the dollar-pegged structure of these digital assets can facilitate cross-border payments, they also warn of associated risks such as money laundering and illegal fundraising. Interest has surged notably since Hong Kong passed its stablecoin legislation in May, leading to a spike in information requests from Chinese investors.

From Shenzhen Warning to Nationwide Restriction

Earlier in July, Shenzhen’s local government issued a public warning about scams operating under the guise of stablecoin investments. Similar alerts quickly spread across the country, culminating in the formal restriction now in place.

Hong Kong’s Different Approach

In contrast to Beijing’s strict stance, Hong Kong is moving forward with its own stablecoin issuance framework. Operating under the “One Country, Two Systems” principle, the special administrative region aims to position itself as a global hub for digital assets, attracting international investors to its market.

New Push for the Digital Yuan

Meanwhile, the People’s Bank of China announced the establishment of a new operational center for the digital yuan (e-CNY) in Shanghai. The goal is to expand its cross-border usage and accelerate global circulation through traditional financial channels.

This approach shows a clear divergence between mainland China’s regulatory caution toward private stablecoins and Hong Kong’s ambition to embrace them as part of its financial growth strategy.

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Building on the momentum from two successful green bond issuances in 2023 and 2024, Hong Kong is preparing its next tokenized bond batch. Financial Secretary Christopher Hui emphasized that this is more than a one-off initiative—it’s a step toward integrating tokenized debt instruments as a regular component of the city’s financial strategy.

Blockchain-Based Bonds Signal Institutional Maturity

The upcoming bond issuance will be recorded and settled using distributed ledger technology (DLT), offering enhanced transparency and efficiency. By doing so, Hong Kong aims to boost institutional confidence and attract global investors to its blockchain-powered financial infrastructure.

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The government is also exploring tax incentives, such as stamp duty exemptions on tokenized ETFs, to encourage wider adoption of tokenized assets in mainstream markets.

A Strategic Leap With Policy 2.0

These moves align with the newly launched Digital Asset Development Policy 2.0, also known as the “LEAP” framework. This forward-looking strategy focuses on legal clarity, ecosystem growth, real-world use cases, and talent development.

Starting August 1, stablecoin issuers will be required to operate under a licensing regime. Simultaneously, public consultations are underway for digital asset trading platforms and custodial services, running through the end of August.

Further bolstering its digital credentials, Hong Kong Exchanges and Clearing (HKEX) has launched real-time price indexes for Bitcoin and Ethereum, providing local reference pricing during Asian market hours to support institutional involvement.

The city’s ambitions don’t stop there. Regulators are preparing the ground for digital asset derivatives, including ETFs and staking services. With legislative support such as the recently passed Stablecoin Bill, Hong Kong is solidifying its global leadership in digital finance and Web3 innovation.

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500 Accounts, One Crypto Scam

Twelve individuals were arrested across Hong Kong and mainland China in connection with a laundering ring that used over 500 bank accounts to funnel illicit funds into crypto. Fraud proceeds were routed through these accounts and converted into digital currencies at local crypto exchange shops.

Authorities discovered the group had been operating out of a residential flat in Mong Kok, turning the location into a base for planning and executing their illegal activities. Over $1.2 million was tied to 58 known fraud cases.

Busted in Real Time

On May 15, two suspects were observed leaving the Mong Kok base — one went to a bank, the other to an ATM. Both then attempted to convert the cash into crypto in Tsim Sha Tsui. Police arrested them on the spot, seizing nearly $98,540 before the money could be laundered.

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Soon after, 10 more people aged between 20 and 41 were arrested. In total, police confiscated $134,370 in cash, more than 560 ATM cards, mobile phones, bank documents, and records of crypto transactions.

According to Senior Inspector Tse Ka-lun, many suspects used bank accounts opened under friends’ or family members’ names to facilitate the laundering process.

Hong Kong Ramps Up Crypto Oversight

This case emerges as Hong Kong rolls out a more robust regulatory framework for the crypto industry. In April, new rules for exchanges offering staking services were introduced, followed by a comprehensive crypto roadmap in February focusing on compliance, infrastructure, and investor protection.

As Bitcoin, Ethereum, and other digital assets grow in appeal, so does the need for tighter security and regulation. Hong Kong’s proactive approach signals its intention to be both a hub and a safe haven for crypto innovation.

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Bitcoin ETPs Turn Negative for the Month

Bitcoin (BTC) ETPs led the decline, with $207 million pulled in just one week. This resulted in a monthly net outflow of $138 million, the first negative monthly total in 2025. Despite that, BTC ETPs still hold $1.3 billion in year-to-date inflows.

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Ethereum (ETH) ETPs faced $38 million in weekly outflows. However, they continue to maintain $279 million in net inflows for the year.

Grayscale Tops YTD Outflows

Grayscale Investments led all ETP providers with $95 million in weekly outflows. Its YTD total stands at $1.4 billion, the largest among all issuers.

In contrast, BlackRock’s iShares ETFs retained $3.2 billion in year-to-date inflows. ProShares and ARK Invest are the only two other major issuers still in the green, with $398 million and $146 million respectively.

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What’s in the New Staking Rules?

Under the new circular, crypto exchanges must:

• Obtain written approval before offering staking services.
• Retain control over staked assets — no third-party custody allowed.
• Fully disclose all risks, fees, lock-up periods, and custodial details.
• Report staking activities to the SFC regularly.

These rules also apply to regulated funds with over 10% exposure to staked digital assets. Funds can only stake assets available to the public on SFC-approved platforms, and leveraged staking is strictly prohibited.

SFC Emphasizes Web3 Vision

At the Hong Kong Web3 Festival, SFC’s Christina Choi stated:

“The SFC is committed to supporting Hong Kong’s Web3 journey.”

Citing NFT market volatility, she emphasized a pragmatic approach to Web3 — focusing on strong fundamentals and sustainable ecosystem building rather than chasing hype.

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Hong Kong remains a top 3 financial hub globally, offering regulatory clarity and easy access to Asian markets — a major draw for Web3 firms.

ASPIRe Roadmap: Future-Proofing Crypto

The city’s ASPIRe strategy includes 12 initiatives across five pillars, such as market access, regulatory optimization, and blockchain efficiency — all aimed at cementing Hong Kong’s crypto leadership.

Choi emphasized the convergence of traditional finance and digital economies:

“The zero-to-one breakthrough has been made; now it’s about going from one to 100.”

NFT Market Weakens

SFC’s announcements come amid a 70% drop in NFT daily trading volume. Bybit shut down its NFT marketplace, following in the footsteps of X2Y2, as interest continues to wane.

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The initiative aims to establish Hong Kong as a leader in the digital asset market and promote the adoption of stablecoins as a secure means of payment for both retail and institutional users.

Secure Stablecoin Model with Standard Chartered’s Banking Infrastructure

As a bank with extensive experience working with stablecoin issuers globally, Standard Chartered will provide the trusted banking infrastructure and governance mechanisms for the initiative.

Bank CEO Bill Winters emphasized that stablecoins are one of the fundamental building blocks of the digital asset ecosystem and said:

“Digital assets are here to stay and will be part of the financial system. Stablecoins are a great contribution to the industry as trusted tools used on public blockchains. Standard Chartered is ready to lead the development of this ecosystem in Hong Kong and globally.”

SCBHK aims to be one of the first companies to launch HKD-backed stablecoins with its participation in the HKMA’s sandbox program for stablecoin issuers.

Web3 and Stablecoin Integration with Animoca Brands

Hong Kong-based Web3 giant Animoca Brands will take part in the initiative to enable stablecoin to bridge the gap between crypto and traditional finance.

Animoca Brands President Evan Auyang described this initiative as an important step towards Hong Kong becoming a global Web3 hub, saying:

“Stablecoins are one of the most robust and widely used applications of Web3. However, they are not yet fully mainstreamed for institutional and individual use. The HKD-backed stablecoin we will issue under HKMA regulations will strengthen Hong Kong’s vision to become a global leader in Web3.”

Innovative Use of Stablecoins in Mobile Payments with HKT

HKT aims to increase the impact of stablecoin on mobile payment systems and the retail sector.

Susanna Hui, Managing Director of the company, said that stablecoin will transform payment systems by providing security and transparency:

“HKD-backed stablecoin will benefit both consumers and businesses by making transaction processes more efficient. HKT is excited to contribute to the development of this new digital payment ecosystem.”

Hong Kong’s Aim to Become a Global Digital Asset Hub

SCBHK, Animoca Brands and HKT are actively involved in the stablecoin sandbox program launched by the HKMA in 2024. The new initiative aims to strengthen Hong Kong’s position as a global digital asset hub by bringing together Web3 and traditional finance.

Stablecoin will play an important role in cross-border payments and financial markets, and will strive to be one of the first companies to be licensed in this field under HKMA regulations.

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