Asia is emerging as a leader in the tokenization of real-world assets, with Japan and Hong Kong at the forefront. Regulatory clarity in these regions is drawing investment from the West. Maarten Henskens from Startale Group noted that Western institutions are establishing operations in Asia-Pacific to engage in innovation and access capital. Japan's methodical regulatory framework fosters institutional trust, exemplified by MUFG's infrastructure for security token issuance. The Payment Services Act in Japan allows stablecoins to secure up to 50% of reserves in low-risk assets. Conversely, Hong Kong promotes rapid regulatory innovation, showcasing how agility can promote market experimentation. The growth of tokenized bonds and ETFs in Japan is opening markets to retail investors, enhancing transparency and streamlining fund administration. Henskens emphasized that seamless cross-border interoperability will be essential for scaling adoption. In addition to Japan and Hong Kong, Dubai is also making advances in tokenization, attracting investors with progressive regulations for tokenized securities. A recent tokenized real estate offering in Dubai saw diverse international participation, underscoring a network effect where innovation in one area catalyzes progress in others.

Source 🔗