Jessy, Golden Finance
June 26, 2024
Hong Kong has unveiled the "Digital Asset Development Policy Declaration 2.0", introducing the LEAP Framework to position itself as a global hub for digital assets. This strategic move signals transformative opportunities for brokerages, particularly in virtual asset trading and tokenized securities.
Market Response: Brokerages in the Spotlight
- GF Securities (Hong Kong): Launched the first daily redeemable tokenized security ("GF Token"), a private placement money market fund for institutional investors.
- Tianfeng International: Secured a virtual asset trading license, propelling its A-share price to a daily limit up.
- Victory Securities: Achieved a 160% intraday stock surge after enabling direct crypto-to-crypto transactions.
Capital markets are betting on brokerages to bridge traditional finance and crypto innovation.
The LEAP Framework: Four Pillars of Opportunity
1. Legal Clarity (L)
- Establishes robust regulations for virtual asset custody, trading, and issuance.
- Reduces compliance risks for brokerages entering crypto markets.
2. Ecosystem Integration (E)
Merges Web3 with traditional finance, enabling brokerages to:
- Offer hybrid wealth management (digital + traditional assets).
- Provide investment banking for tokenized projects.
- Develop novel financial products (e.g., crypto-linked derivatives).
3. Asset Tokenization (A)
RWA (Real-World Assets) Focus: Tokenized commodities (e.g., green energy, metals) will expand brokerage roles in:
- Underwriting tokenized bonds/funds.
- Structuring complex securitized products.
4. Partnerships (P)
- Global collaborations with digital asset platforms and tech providers will enhance competitiveness.
Challenges Ahead
- Intense Competition: Brokerages face rivals from crypto-native exchanges.
- Operational Hurdles: Scaling tech infrastructure and client education are critical.
FAQs
Q: How does tokenization benefit investors?
A: It enables fractional ownership, 24/7 trading, and automated compliance via smart contracts.
Q: Which brokerages lead in crypto adoption?
A: GF Securities, Victory Securities, and Tianfeng International are early movers with licensed services.
Q: Will retail investors access tokenized securities?
A: Currently limited to institutions, but public offerings may follow as regulations evolve.
👉 Explore Crypto-Friendly Brokerages
Hong Kong’s blueprint is set—brokerages must now innovate or risk being left behind.