Digital asset under custody jumps 180% to hit $14b as Hong Kong leads regulatory push

Tokenised deposits hit $29b ahead of March stablecoin licence launch.

Hong Kong is expanding its digital asset ecosystem, with growing adoption of Web3 technologies, tokenisation, and AI, Financial Secretary Paul Chan said at Consensus Hong Kong 2026 on 11 February.

The Hong Kong SAR Government issued the first tokenised government green bonds, and the HKMA launched the world’s largest digital green bond last year, a multi-currency offering of $10b.

Financial institutions held over $14b in digital assets under custody at the end of 2025, up 180% year on year, and tokenised deposits reached $29b, Chan said.

“Banks are integrating decentralised finance (DeFi) mechanisms, such as automated market-making, on-chain collateral, and programmable liquidity pools, into their operations, while regulators maintain oversight on anti-money laundering, investor protection, and financial stability,” said Chan.

Hong Kong has implemented a stablecoin issuer regime, with a first batch of licences planned for March 2026, and legislation for digital asset dealers and custodians is expected this summer, Chan said.

The HKMA is also regularising tokenised green bond issuance and piloting Ensemble TX for faster and more transparent settlement of tokenised transactions.