Hong Kong Financial Group, Ed Financial, has unveiled plans to broaden its Real-World Asset (RWA) offerings as part of its support for the Hong Kong Securities and Futures Commission’s (SFC) market-liquidity initiatives. This strategic move seeks to bridge virtual-asset markets with traditional finance, reinforcing Hong Kong’s standing as a leading financial hub.
Alignment with SFC’s “A-S-P-I-Re” Roadmap
The SFC’s “A-S-P-I-Re” framework—comprising Access, Safeguards, Products, Infrastructure, and Relationships—serves as the regulatory backbone for enhancing liquidity in Hong Kong’s virtual-asset ecosystem. Under this policy:
- Access: Streamlining entry for new participants, including RWA service providers.
- Products: Diversifying licensed offerings beyond conventional digital tokens to include tokenized real estate, bonds, and other tangible assets.
- Infrastructure: Upgrading platforms for efficient distribution, custody, and market making of RWA products.
Ed Financial’s initiative directly supports these pillars by planning distribution and market-making services for tokenized real estate, debt instruments, and physical-asset baskets.
Ed Financial’s RWA Expansion Strategy
In response to evolving regulatory priorities, Ed Financial is undertaking several key actions:
Research & Development
The firm has allocated significant R&D resources to develop secure tokenization protocols and smart-contract frameworks for RWAs, ensuring compliance with existing securities laws.
Market-Making Services
By leveraging its established virtual-asset market-making platform, Ed Financial aims to provide continuous bid-ask liquidity for tokenized RWAs, thereby reducing spreads and improving tradability.
Distribution Network
Collaboration with licensed virtual-asset exchanges and institutional counterparties will facilitate wide distribution of RWA products, enhancing market depth and participation.
Expected Market Impact
The expansion of RWA services is anticipated to yield several benefits:
Enhanced Liquidity
Tokenization and active market-making in RWAs are projected to inject new capital flows, narrowing liquidity gaps between digital and traditional markets.
Broader Investor Base
Access to fractionalized real-world assets will enable retail and professional investors to diversify portfolios beyond native cryptocurrencies.
Innovation Catalyst
Integration of traditional asset classes into blockchain ecosystems may spur further fintech innovations, including hybrid financial instruments and automated compliance tools.
Dr. Ricky Yeung, Head of Virtual Asset at Ed Financial, emphasizes that combining RWA distribution with market-making services will drive sustainable growth and reinforce Hong Kong’s competitiveness as a global digital-asset center.
References
- Hong Kong Securities and Futures Commission Policy Roadmap, SFC (2025)
- “Eddid Financial Expands Virtual Asset Liquidity and Enters RWA Market in Hong Kong,” LiquidityFinder (2025)
