The global shift toward digital finance is accelerating, driven by policy support and technological innovation. With governments like Hong Kong advancing clear regulatory frameworks and financial institutions embracing blockchain infrastructure, the stablecoin and central bank digital currency (CBDC) ecosystem is entering a new phase of maturity. This article maps out the core players shaping this transformation—across trading platforms, payment systems, blockchain security, and real-world asset tokenization (RWA)—while offering strategic insights for investors navigating this high-potential sector.
Emerging Policy Tailwinds Fuel Market Growth
Recent developments signal strong institutional momentum behind digital assets. The Hong Kong government’s release of its Digital Assets Development Policy Declaration 2.0 underscores a strategic commitment to tokenized finance, emphasizing real-world applications and cross-border use cases. Notably, the upcoming enforcement of Hong Kong’s Stablecoin Ordinance in August 2025 will establish a formal licensing regime, enhancing market legitimacy and driving demand for compliant infrastructure.
Simultaneously, regulatory coordination is expanding. A joint directive from China’s central bank and five other ministries highlights the importance of capital market stability and long-term investment flows—creating an indirect but favorable environment for fintech innovation, including digital currency integration.
👉 Discover how global policy shifts are unlocking next-gen financial opportunities.
Key Players in Digital Asset Trading & Securities Platforms
CTBC International
As the first Chinese-funded securities firm licensed to offer virtual asset trading services in Hong Kong, CTBC International holds a first-mover advantage. Clients can now trade cryptocurrencies and stablecoins directly on its platform, positioning it at the forefront of institutional-grade digital asset access in Asia.
- Regulatory Edge: License scarcity under the new stablecoin rules enhances competitive moat.
- Cross-Border Demand: Anticipated surge in wealth management flows using tokenized assets.
CITIC Securities & Huatai Securities
These industry-leading brokers are not just observers—they’re active participants in the digital transformation of finance.
- mBridge Involvement: Both firms contribute to the multi-central bank digital currency bridge project, enabling efficient cross-border settlements using CBDCs and stablecoins.
- Technical Infrastructure: Leverage blockchain to streamline OTC clearing and enable real-time multi-currency exchange.
Payment Infrastructure: Bridging Traditional Finance and Digital Currencies
Lakala (300773)
A dominant force in China’s third-party payment space, Lakala stands out with unique advantages:
- Only non-bank entity connected to China’s Cross-Border Interbank Payment System (CIPS).
- Over 5 million POS terminals capable of scanning stablecoin payments.
- Strategic partnership with JD.com expands offline adoption; Hong Kong subsidiary holds MSO (Money Service Operator) license.
- Cross-border transaction volume grew 85% year-on-year.
Newland (000997)
As one of the world’s top three POS terminal manufacturers, Newland integrates digital currency functionality into physical hardware.
- Devices support digital yuan “hard wallet” features.
- Enable settlement in 38 currencies.
- Proprietary blockchain + quantum encryption technology reduces cross-border processing time to just 8 seconds, with fees as low as 0.1%.
Core Technology Providers: Enabling Secure Digital Transactions
Formssmart (300468)
A key technical partner of the Hong Kong Monetary Authority’s mBridge initiative.
- Developed FINNOSafe platform for full lifecycle stablecoin management.
- Sandbox-tested transactions exceeding HK$50 billion.
- Poised to become a primary system provider once formal stablecoin licensing begins.
Hengbao (002104)
Leader in hardware security modules (HSM), critical for protecting digital assets.
- Pioneered “offline cold wallet + quantum encryption” solution.
- Supports offline signing for stablecoin wallets—enhancing security without sacrificing usability.
- Holds 60% market share in HSM modules; technology aligns with Hong Kong compliance standards.
Jingbei North (002987)
Full-scenario service provider for digital RMB and cross-border infrastructure.
- Participates in multilateral CBDC bridge development.
- Awarded a ¥230 million contract by Bank of China for a cross-border stablecoin clearing platform.
- Blockchain public service platform enables automated smart contract execution—ideal for RWA applications.
Blockchain Security & Data Integrity Leaders
Feitian Technologies (300386)
Globally recognized for its secure authentication solutions.
- Sole blockchain wallet provider certified at FIDO2 Level 2 globally.
- Supplies hardware encryption modules for JD’s stablecoin initiatives.
- Q1 2025 net profit surged 321% YoY; holds 39% market share in cross-border payment security.
👉 Explore how cutting-edge security is redefining trust in digital finance.
Infosec Century (688201)
Critical supplier of encryption algorithms for China’s central bank digital currency.
- Provides end-to-end security solutions for stablecoins.
- Supports SM2/SM9 national cryptographic standards (Level 2 certification).
- Secured over ¥1.5 billion in contracts for cross-border payment security projects in Q1 2025.
Real-World Asset Tokenization and Cross-Border Innovation
Hailian Jin Hui (002537)
Unique among A-share listed firms with a Hong Kong MSO license.
- Cross-border payment system enables near-instant settlement in USDT and HKD-pegged stablecoins.
- Involved in pilot programs for RMB-based crude oil settlements in the Middle East.
- Cross-border revenue accounted for 35% of total in Q1 2025.
GCL Energy Tech (002015)
Pioneer in renewable energy tokenization.
- Completed China’s first photovoltaic RWA project, raising ¥200 million via asset-backed tokens.
- Real-time power generation data is recorded on-chain, enabling stablecoins to be pegged to physical output.
- Collaborating with AntChain to expand into Southeast Asia; expects over ¥500 million in new orders by Q3 2025.
Banking & Financial IT: Building the Backend of Digital Finance
Yunextech (300674)
Leading provider of core banking systems in China.
- Designed stablecoin asset custody modules for licensed virtual banks in Hong Kong.
- Supports multi-chain wallet integration—critical for interoperability.
- With banks increasing blockchain-related IT spending, module procurement could exceed ¥8 billion by 2025.
Xinli Financial (600318)
Regional leader in financial IT services.
- Active participant in Yangtze River Delta digital RMB pilot zones.
- Adapts stablecoin use cases for supply chain finance.
- Its blockchain-powered platform serves over 200 SMEs.
Frequently Asked Questions (FAQ)
Q: What is driving the growth of stablecoins in Asia?
A: Regulatory clarity—especially in Hong Kong—and growing institutional adoption through licensed platforms are key drivers. The integration of stablecoins into cross-border payments and trade finance is expanding their utility beyond speculation.
Q: How does RWA (Real World Asset) tokenization work?
A: RWA involves representing physical assets like real estate, commodities, or energy production as blockchain-based tokens. These tokens can be traded or used as collateral, with value often stabilized via pegging to fiat or stablecoins.
Q: Why are hardware security modules (HSMs) important?
A: HSMs protect cryptographic keys used in digital wallets and transaction signing. They are essential for securing high-value financial operations, especially in regulated environments.
Q: Is quantum encryption commercially viable today?
A: Yes—companies like Newland and Hengbao are already deploying quantum-resistant encryption to future-proof financial infrastructure against emerging threats from quantum computing.
Q: What role do traditional banks play in digital currency adoption?
A: Banks serve as bridges between legacy finance and Web3. They provide custody solutions, integrate stablecoins into payment rails, and develop new products like tokenized deposits or RWA-backed loans.
Q: Are there risks in investing in digital currency-related stocks?
A: Yes. Regulatory uncertainty, rapid tech changes (e.g., quantum computing), and market volatility—especially in short-term price movements—are key risks. Focus on companies with proven contracts and real-world deployments.
👉 Stay ahead of the curve with actionable insights from the future of finance.
Strategic Investment Outlook
- Short-Term Focus: Prioritize firms benefiting from Hong Kong’s licensing rollout—such as Formssmart and Hengbao—and established payment leaders like Lakala and Newland.
- Long-Term Bets: Allocate to RWA innovators like GCL Energy Tech and cybersecurity specialists including Feitian and Infosec Century.
- Portfolio Logic: Diversify across three pillars—payment infrastructure, underlying technology, and application scenarios—with preference for companies backed by verified orders and government or institutional partnerships.
As digital currencies evolve from concept to core financial infrastructure, early movers with solid technical foundations and regulatory alignment are best positioned to lead the next era of global finance.