When Hong Kong legislators passed The StableCoins Regulation Last month, they opened the city state to become a global hub for digital assets, with dozens of companies that are now trying to issue issue Stablecoins under the new frame. According to China’s largest securities broker, the new law goes beyond StableCoins and will anchor multi-ticket dollars tokenization of real assets (Rwas) in the city.
In a new note, Opinated Analysts from Citic Securities that Stablecoins would eliminate volatility from the tokenization sector and increase the market’s liquidity in the emerging industry.
In addition, the new framework will serve as a basis for future legislation focused on Digital currency paymentscustody and decommissioning, which will further accelerate tokenization, Citics Yang Zeyuan Added.
Tokenization is already flourishing in Hong Kongled by some of the city’s largest companies, including HSBC (Nasdaq: HSBC), the local division of Bank of China (Nasdaq: Bachy) and Ant International. HSBC’s Orion -Tokenisation Platform has become an industry standard in the city, and customers that the European Investment Bank has used it for Start tokenized bonds.
Tokenization has expanded in addition to the financial sector. Last year, Electric Vehicle Charging Firm Longshine Technology issued $ 14 million in return -bekens and collaborates with Ant Digital Technologies at the company.
Hong Kong’s Stablecoin clearness will help this tokenization for local and mainland companies, says Citic analyst.
The new Stablecoins regulation is already attracting some of Asia’s largest companies that are trying to venture into this fast -growing and extremely lucrative sector.
One is Jingdong Coinlink technology, a subsidiary of China’s second largest e-commerce company JD.com (Nasdaq: JD). The Hong Kong-based company plans to apply for a license under the new framework to issue HKD and USD Stablecoins. CEO LiU Peng says Stablecoins will play a central role in cross -border payments for JD.com as the Chinese giant of $ 90 billion expands to other countries.
Tokenization fuels Dubai’s flourishing real estate market
Elsewhere, Dubai’s property market registered rapid growth in May in the middle of the city’s driving force for tokenization in the sector.
Information from Property Finder revealed that real estate sales in May hit $ 66.8 billion Dirham ($ 18 billion), an increase of 44% from year to year, as the transaction bill increased by 6% to 18,700.
“It reinforces what we already knew, Dubai becomes one of the most active and attractive real estate markets globally. When you see 60 billion dirhams in transactions in a single month, it is a strong signal that the market is fluid, dynamic and ready for innovation,” Scott Thiel, CEO of TKinvest, told an outlet. The company offers a platform to buy, sell and manage tokenized RWA assets.
Dubai has launched a tokenization campaign during the past year in its thriving real estate sector. Last month the city
Launched Middle East’s first tokenized real estate project, with title act stored on a blockchain platform. By fractionation, investors can buy shares with as little as $ 550.
Dubai’s property market is one of the world’s most lucrative. Last year, the sector registered $ 523 billion ($ 142 billion) in transaction value, with the luxury segment that registered a 17% annual growth, among the highest growth rates globally with Manila and Seoul.
According to Thiel, tokenization can further drive this growth.
“Tokenization will not only follow the next post, we think, it will help to run it,” he said.
What is the next tokenization?
Tokenization has appeared as one of Applications of blockchain technology with the highest potential. A report from Boston Consulting Group (BCG) projected that it will unlock $ 23.4 trillion in value by 2034.
In recent years, it has exploded in addition to pilots and limited evidence of concept (POC) to substantiate business with several billion dollars. Last month, UAE developer Mag signed An agreement to tokenize $ 3 billion of its properties on the Multibank Group’s financial derivative platform.
But while the technology is rapidly moving forward, the supervisory authorities have not kept in line, and this can hinder the assumption.
In the United States, for example, start -ups can raise money directly from investors by issuing tokens rather than from traditional VCs. But as Robinhood’s (Nasdaq: Hood) Senior Deputy President Johann Kerbrat recently noted, the country’s law only allows accredited investors to participate in such financing rounds.
“A new regulatory method is needed to allow tokenization to flourish, and that system should be designed at a federal level to give consistency to the market,” he told A news outlet.
Look at | Spotlight on: Centi Franc – the truly stable Stablecoin
https://www.youtube.com/watch?v=HNVZK_XL4XW Title = “Youtube video player” Framebord = “0” Allow = “Accelerometer; Autoplay; Clipboard Writing; Encrypted Media; Gyroscopes; Image-in-Image; Web-Share” Reference Policy = “Strict-Origin-When-Cross-ORIGIN” permitted Lorscreen>
