- Digital asset adoption rises as Asia’s wealthy investors pivot from US dollar holdings to crypto and gold.
- Hong Kong leads with Bitcoin ETF approval and stablecoin rules as region sets global regulatory standard.
- Private banks report growing demand for Bitcoin, stablecoins, and Chinese equities across Asia.
Digital assets are catching on fast among investors worldwide, with Asia leading the charge as wealthy individuals shift away from traditional US dollar-based portfolios.
According to the South China Morning Post, digital asset adoption is changing rapidly, especially with spot Bitcoin ETFs in the US now managing more than $120 billion. BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack with over $65 billion in assets.
Stablecoin transactions hit $27 trillion in 2023, outpacing the combined yearly volume of Visa and Mastercard. This growth highlights what some analysts call the “Uncertainty Paradox”—digital assets have moved past their speculative roots and are now seen as tools for hedging and building new financial infrastructure.
“The appeal of ‘digital gold’ is clear,” noted analysts at Galaxy Digital, highlighting Bitcoin’s maturing status as a digital store of value.
“But the revolution lies deeper—in the creation of an alternative financial system.”
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Hong Kong Leads With Regulatory Firsts and Web3 Roadmap
Since 2020, Hong Kong’s Securities and Futures Commission (SFC) has licensed 10 virtual asset trading platforms and became the first to approve spot Bitcoin and Ethereum ETFs in April 2023. The city later passed a stablecoin bill that sets strict rules for reserves and redemptions.
The SFC’s latest 12-point roadmap is aimed at strengthening Hong Kong’s crypto and Web3 ecosystem. New licensing rules cover OTC trading, custody, insurance, and compensation services, all designed to manage risk for big institutional players.
Related: Hong Kong Defends Currency Peg, Bitcoin Pumps Back to $97K, US-China Trade Talks
Financial Secretary Paul Chan Mo-po says Hong Kong’s plan is twofold: protect against financial risks while staying competitive through innovation. Pilot projects now include the e-HKD, tokenized green bonds, and blockchain-powered trade finance.
Asia’s Wealthy Shift From the Dollar to Crypto and Gold
Private banks like UBS and Morgan Stanley report a clear move by wealthy Asian clients away from dollar-based assets and into gold, crypto, and Chinese stocks.
“Volatility is definitely here to stay,” said Amy Lo, UBS’s Asia wealth co-head, at a recent Bloomberg event.
“Clients are diversifying into assets that are both defensive and growth-oriented—crypto and gold are emerging as top picks.”
A recent Bank of America survey shows fund managers holding their biggest underweight USD positions in nearly 20 years. After a recent US-China tariff truce in May, capital has started returning to Chinese markets, pushing Hong Kong’s benchmark index to one of the year’s best performances.
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