Crypto Exchange HashKey Launches RWA Issuance for Institutions Amid Tokenization Boom

The Hong Kong-based crypto exchange, HashKey, has announced a new tool for its institutional investors, which will help them with the issuance of real-world assets, also known as RWAs. The announcement comes at a time when demand for tokenization is on the rise.

HashKey Debuts RWA Issuance Tool for Institutions

The Hong Kong-based crypto exchange, through a recent press release, stated that it is launching a one-stop solution for the issuance of RWAs. The exchange stated that financial institutions can now unlock the value of illiquid assets and transform them into tradable tokens.

The company also stated that asset issuers can utilize this tool to offer technology-based services to their clients. This followed after Hashkey initiated its IPO proceedings last month. The company has begun to accept orders from investors, seeking to raise a minimum of $200 million in capital.

The CEO of the company, Dr. Xiao Feng, also explained how it would help the country of Hong Kong catch up with the trend of tokenization in Asia.

The exchange also explained that it is compatible with ERC-3643 standards through the use of a cross-chain feature of Hashkey Chain and other networks. The trading access, on the other hand, will be done through Hashkey Exchange, subject to approval.

Asia’s Tokenization Market Now Valued over $4T

Asia appears to be leading the latest charge in the market with regard to tokenization, driven by regulatory initiatives. For example, Singapore’s Monetary Authority is currently undertaking Project Guardian. This uses a risk tiered methodology to encourage banks and asset managers to test tokenized funds.

The project has been extended to cross-border pilots with the UK, Japan, and Switzerland. This is currently one of the most developed programs globally.

In addition, Hong Kong’s SFC has issued guidelines on tokenized securities and intermediaries. The government has also conducted a series of digital green bonds, with a total of $1.28 billion raised and a plan to formalize the RWA token issuance, as with Hashkey.

In the case of the UAE, the government’s bodies have continued to show their support for the tokenization market. This was seen when the Dubai Land Department announced that the tokenized properties are live on the XRPL.

Meanwhile, regions such as Europe are facing a number of challenges that the market needs to overcome. For context, although the MiCA regulation covers e-money tokens and asset-referenced tokens, it does not cover tokenized securities.