I even heard an institutional investor saying: “Why does Hong Kong need Web3? We already have the horse racing industry for gamblers.”
The current volatility, security risks and technological barriers in the cryptocurrency market make it difficult to anticipate a significant growth in retail investment any time soon. But we are seeing encouraging signs of the institutional adoption of digital assets and blockchain technology.
Choi Fung Yee, a member of the Securities and Futures Commission (SFC) and the executive director of the investment products division, spoke at the recent Bloomberg Buy-side Forum about the SFC’s efforts to provide more detailed guidance on the tokenisation of authorised investment products.
Blockchain technology is also being adopted by more mainstream companies. One case in point is Grab, the Southeast Asian “super app” with a user base of 180 million, which recently launched a Web3 wallet for its Singaporean customers. This wallet, supported by the Polygon blockchain, stands as a testament to the real-world applications of digital currency, facilitating Singapore dollar stablecoin payments.
The road to the mass adoption of digital assets is admittedly steep. But the strides made by institutional forces in bridging the chasm between traditional finance and cryptocurrency finance are noteworthy.
During the last speculative bubble, the digital asset market was mostly driven by a get-rich-quick aspiration that attracted retail investors, of which JPEX was a part.
While setbacks such as the JPEX scandal present challenges to Hong Kong’s cryptocurrency ambition, it also indicates a maturing industry moving beyond mere speculation. We are seeing significant progress in the areas of stablecoin, payments and real-world assets. The rapidly growing institutional adoption promises a more stable and transformative digital economy for Hong Kong and Asia as a whole.
Lily Z. King is chief operating officer of Cobo, a leading global cryptocurrency custodian service provider and blockchain infrastructure developer
Article was originally published from here