Fosun Plans Hong Kong-Based Asset Tokenization Venture Worth HK$100 Billion
Hong Kong is witnessing a surge in digital finance innovation, with Chinese conglomerate Fosun International's latest move further strengthening its competitive position against Singapore and other Asian financial centres.
Fosun International, a global investment group, has launched the FinRWA Platform in Hong Kong. The platform, part of Fosun International's bet on asset tokenization, aims to capture HK$100 billion in custody assets within five years.
Cai Hua, the CEO of Finloop, a company established by Fosun International in Hong Kong focused on asset tokenization, expressed his anticipation for an inevitable shift towards securities tokenization and blockchain-based assets.
The FinRWA Platform addresses a key friction point in digital asset adoption by allowing investors to manage both virtual asset trades and traditional securities through a single interface. The platform targets institutional clients seeking streamlined access to tokenized real-world assets (RWAs) without abandoning conventional investment operations.
E-commerce group JD and Standard Chartered Bank have signaled intentions to apply for stablecoin issuer licenses under Hong Kong's forthcoming Stablecoins Ordinance, indicating a growing interest in digital finance in the city.
Cai Hua, the Finloop CEO, also sets a five-year target of a fivefold increase from the company's current HK$20 billion asset base. The company aims to capture value across the entire tokenization process from issuance to trading and custody.
Fosun's securities arm has successfully upgraded to include virtual asset trading services under Hong Kong's regulatory framework. Over 40 firms have expanded their licenses to capture digital asset opportunities in Hong Kong.
The Hong Kong government's second policy statement on digital assets, released in June, emphasizes expanding tokenized product offerings and establishing the city as a global innovation center. The FinRWA Platform is Hong Kong's first comprehensive tokenized money market fund offering across multiple currencies, including renminbi, US dollar, and Hong Kong dollar.
Finloop relocated to Hong Kong in 2024 with assistance from the Office for Attracting Strategic Enterprises, which has prioritized digital finance as one of five key sectors for economic development. The influx of mainland capital and expertise in digital asset infrastructure represents validation of Hong Kong's regulatory approach.
The government's strategy in Hong Kong seems to be paying dividends, as it emerges as a global hub for digital finance innovation. The launch of Fosun's FinRWA Platform is a testament to this, and it is expected that more companies will follow suit, further bolstering Hong Kong's digital finance sector.
