In a move underscoring Beijing’s tight grip on digital finance, China’s securities regulator has quietly instructed several domestic brokerages to suspend their real-world asset (RWA) tokenisation operations in Hong Kong, according to sources familiar with the matter. The informal guidance from the China Securities Regulatory Commission (CSRC), issued in recent weeks to at least two major firms, reflects growing concerns over the risks of unchecked expansion into offshore blockchain-based products amid a global RWA frenzy. For investors and fintech observers searching China RWA tokenisation pause, CSRC brokerages Hong Kong, or digital assets regulation 2025, this development highlights the tension between Hong Kong’s Web3 ambitions and mainland China’s post-2021 crypto crackdown, potentially cooling a sector forecasted to explode from $29 billion today to over $2 trillion by 2030.
As Hong Kong ramps up its role as Asia’s crypto hub, the pause could ripple through cross-border innovation. Let’s break down the directive, its context, and what lies ahead.
The Directive: Informal Guidance to Halt Offshore RWA Activities
RWA tokenisation involves converting traditional assets—such as stocks, bonds, funds, real estate, or even intellectual property—into blockchain-traded digital tokens, enabling fractional ownership, faster settlements, and yield generation. Over the past few months, a wave of Chinese firms, including brokerages like GF Securities and China Merchants Bank International (CMBI), have launched such products in Hong Kong, capitalizing on the city’s progressive stance.
However, the CSRC’s informal advice—described as “guidance” rather than a formal ban—urges brokerages to strengthen risk controls, verify underlying assets’ legitimacy, and temporarily refrain from new RWA ventures offshore. Sources indicate the pause’s duration is unclear, but it aims to prevent “euphoric” rushes into digital assets that could expose firms to financial instability.
Notable recent launches now under scrutiny:
- GF Securities’ “GF Tokens”: Introduced in June 2025, these yield-bearing products track U.S. Treasury prices on blockchain.
- CMBI’s Tokenised Bond: In August 2025, helped Shenzhen Futian Investment raise 500 million yuan ($70 million) via a digital bond.
- Seazen Group’s Initiatives: The developer announced plans for tokenising real estate income and issuing property-tied NFTs by year-end.
The CSRC, FSTB, HKMA, and SFC have not commented publicly.
| Firm | RWA Product | Launch Date | Status Post-Guidance |
|---|---|---|---|
| GF Securities | GF Tokens (U.S. Treasury-backed) | June 2025 | Paused new activities |
| China Merchants Bank International | Tokenised Digital Bond | August 2025 | Under review |
| Seazen Group | Real Estate Income Tokenisation & NFTs | Planned Q4 2025 | Likely deferred |
Context: Hong Kong’s Push vs. Beijing’s Caution
Hong Kong has aggressively courted digital assets since 2023, issuing licenses for virtual asset trading, advisory, and management while reviewing RWA regulations—initially focusing on bonds—in June 2025. This contrasts sharply with mainland China’s 2021 ban on crypto trading and mining, driven by financial stability fears after it was once the world’s top Bitcoin hub.
The timing of the CSRC’s intervention coincides with:
- Global RWA Boom: Valued at $29 billion, with forecasts from China Merchants Securities eyeing $2 trillion by 2030, fueled by DeFi integration and institutional interest.
- Hong Kong’s Ecosystem: Stablecoin laws, Project Ensemble for tokenised settlements, and a surge in tokenisation pilots, drawing Chinese firms seeking offshore innovation.
- Risk Signals: Beijing worries about unregulated stablecoins, cross-border crypto flows, and asset mismatches, prompting a “prudent pause” until policies harmonize.
Forbes analysts suggest this is a temporary measure to align tokenised assets with regulated money legs, prioritizing low-risk RWAs like money-market funds over real estate-linked ones.
Implications: A Chill on Cross-Border Innovation?
The pause could have far-reaching effects:
- For Brokerages: Mainland firms may pivot to lower-risk onshore pilots or delay Hong Kong expansions, impacting revenue from yield products.
- Hong Kong’s Hub Status: While not a full stop, it tempers momentum, potentially shifting focus to non-Chinese players and influencing global corridors like Gulf-Asia or EU-Asia.
- Global RWA Market: Highlights regulatory hurdles in major economies; could slow adoption but encourage compliant frameworks.
- Broader Crypto Ties: Echoes China’s selective Web3 support (e.g., blockchain for supply chains) while curbing speculative elements, amid U.S.-China trade frictions.
Experts recommend firms document compliance—asset classes, investor eligibility, and settlement safeguards—to navigate the uncertainty.
Pathways Forward: Harmonization on the Horizon?
The CSRC’s move buys time for policy alignment, with Hong Kong’s legal review expected to yield guidelines soon. A full resumption could follow if risks are mitigated, potentially via tokenised deposits or wCBDC in Project Ensemble. For now, it serves as a reminder: Innovation must rhyme with Beijing’s tune.
In the $4 trillion crypto landscape, this pause tempers euphoria but doesn’t extinguish it—watch for Q4 updates as Hong Kong’s stablecoin regime rolls out.
Conclusion: Beijing’s Brake on Blockchain Ambitions
China’s instruction to brokerages to pause RWA tokenisation in Hong Kong is a calculated step to rein in offshore digital asset zeal, balancing innovation with stability in a market poised for trillion-dollar growth. As Hong Kong forges ahead, this cross-strait tension could redefine Asia’s Web3 future. For those tracking China crypto regulation 2025 or RWA global outlook, the pause is prudent—but expect a harmonised acceleration soon. Will it foster safer tokenisation, or stifle momentum? The blockchain ledger awaits. Reuters
