Key Highlights
- China clears offshore RWA tokenization, giving firms a legal path to issue tokens backed by domestic assets.
- Crypto remains tightly controlled; Chinese firms can’t issue stablecoins abroad, and Bitcoin or Ethereum lack legal tender status.
- Hong Kong could become a hub for China’s digital asset experiments, including potential gold-backed tokens challenging the U.S. dollar.
China is opening a new chapter for real-world asset (RWA) tokenization, causing a stir among global investors. At the Consensus Hong Kong event, Joseph Chee, Executive Chairman of Solana, stated, “You can use onshore assets, tokenize them, and do your RWA crypto business outside of China. All you have to do is make a filing.”
The chairman’s remarks come as investors in Hong Kong and China rushed to buy stocks linked to real-world assets. They are betting that Beijing will soon formalize rules for offshore RWA tokenization.
While China still blocks these activities domestically, authorities now allow companies to issue tokens overseas using Chinese assets as backing. This opens a clear and legal path for businesses and investment banks to grow in blockchain-based asset management.
Implications for RWA market and technology providers
As per Reuters, Guosen Securities described the guidance as a milestone for China’s RWA sector, noting it turns “unregulated growth” into “a race for compliance.” Firms with blockchain expertise and cross-border operations can now target new business opportunities. Moreover, non-compliant projects are likely to be phased out, creating space for technology companies offering compliant data management and tokenization services.
Apart from the focus on RWA tokenization, the announcement highlights China’s careful approach to cryptocurrencies. The central bank and seven other regulators recently made it clear that digital coins like Bitcoin and Ethereum cannot be used as official money in the country.
They also said Chinese firms cannot issue yuan-backed stablecoins overseas without approval, stressing strict oversight. Authorities listed several forbidden activities, including trading crypto, swapping one digital asset for another, or providing price and info services. They warned that breaking these rules could be considered illegal financial activity.
Global context and strategic considerations
U.S. Treasury Secretary Scott Bessent highlighted potential strategic implications, suggesting China might explore gold-backed digital assets. He said, “They have a very large sandbox in Hong Kong, and the [Hong Kong Monetary Authority] is actively traveling the world, looking at different mechanisms.”
While speculative, this shows Beijing may diversify beyond the yuan for digital asset support, potentially challenging the U.S. dollar’s global dominance.
China’s new rules for RWA give companies legal clarity and a chance to operate offshore, while crypto activities stay tightly controlled. Firms with blockchain and compliance know-how are likely to benefit the most.
Also Read: Trump Coins Sucked the Liquidity Out: Scaramucci Blames Political Meme Coins
