In early spring 2026, the winds along Victoria Harbour are shifting decisively toward Web3.
Just yesterday (February 11), under the spotlight of the Consensus Hong Kong 2026 conference, Hong Kong Chief Executive John Lee and Financial Secretary Paul Chan delivered a series of major announcements: the first batch of stablecoin issuer licenses is expected to be officially granted in March; margin lending for virtual assets will be permitted; a regulatory framework for perpetual contracts will be established; and, for the first time, affiliated market makers will be allowed to operate.
While the global crypto market continues to search for direction amid volatility, Hong Kong is leveraging its "China advantage + global advantage" as a dual engine, transforming its traditionally "prudent" regulatory philosophy into a proactive institutional edge. For Gate users tracking on-chain opportunities, this is more than just a policy update—it’s a rallying call for strategic asset allocation.
Three Pillars of Support: From "Sandbox" to "Hub" in Regulatory Evolution
At this year’s Consensus conference, the Hong Kong government’s stance has shifted from outlining broad visions to presenting a concrete roadmap with clear timelines.
First, stablecoins are entering a "licensed era." John Lee confirmed that the Hong Kong Monetary Authority is actively processing applications for fiat-backed stablecoin issuers under the Stablecoin Ordinance, with the first licenses set to be issued next month. This positions Hong Kong, following Abu Dhabi and Singapore, as one of the few global financial centers to offer both a fiat stablecoin issuance regime and a compliant custody environment.
Second, the Securities and Futures Commission’s "ASPIRe" roadmap is moving from planning to execution. Dr. Rocky Yip, Executive Director of the Intermediaries Division, stated that the core focus for 2026 is "liquidity." To this end, the SFC is rolling out three key measures:
- Lifting the ban on margin lending: Licensed brokers can now offer financing using securities and virtual assets as collateral. For now, eligible collateral is limited to Bitcoin (BTC) and Ethereum (ETH), with a minimum prudent haircut of 60%.
- Introducing a perpetual contracts framework: This opens a compliant leverage channel for professional investors, with strict prohibitions on platforms extending credit for margin.
- Allowing affiliated market makers: Licensed platforms’ affiliated companies can now serve as market makers, institutionalizing the narrowing of bid-ask spreads.
The logic behind these moves is clear: ignite the compliant growth of digital assets by harnessing the liquidity engines of traditional finance.
The Numbers Don’t Lie: HKD 14 Billion in Custody Signals Confidence
The impact of policy is often first reflected in the ledgers of custodians.
Paul Chan revealed that by the end of 2025, digital assets under custody at Hong Kong banks had surged by approximately 1.8 times year-over-year, surpassing HKD 14 billion. The total value of tokenized deposits reached HKD 29 billion. Meanwhile, the scale of tokenized gold under management doubled in just six months to USD 400 million.
Behind these hard numbers lies a genuine "vote of confidence" from traditional capital in Hong Kong’s regulatory framework. Within Gate’s institutional user community, discussions around RWAs (Real World Assets) have increased by 62% in the past 30 days. The combination of compliant stablecoins and tokenized government bonds is quickly becoming the defensive alternative to USDT for Asia’s high-net-worth clients.
When Compliant Leverage Meets a Market Bottoming Phase
With supportive policy winds, the market finds itself at a delicate inflection point.
As of February 12, Gate’s real-time data shows the crypto market entering a narrow consolidation phase after a prior correction:
- Bitcoin (BTC) is trading near $67,500, with short-term support at $65,000 on the 4-hour chart. The first resistance is at $68,600; a breakout with strong volume could pave the way for another test of the $70,000 psychological level.
- Ethereum (ETH) is showing relative weakness, currently at $1,980, and remains range-bound between $1,900 and $2,000. Short-term momentum will depend on whether Layer 2 protocol revenues can rebound.
Hong Kong’s recent approval of BTC/ETH margin lending comes precisely as the market is bottoming out on lower volumes. For experienced traders on Gate, a 60% collateral haircut means up to 2.5x effective leverage within a compliant framework. In the volatility-constrained mid-February environment, this serves as both a risk management tool and a yield enhancement strategy.
From "Product Innovation" to the Next Stop: The Machine Economy
If 2025 marked the start of Hong Kong’s virtual asset legislation, then 2026 is the launchpad for an explosion in "structured products."
Paul Chan highlighted three major trends in his speech: the real-world asset (RWA) tokenization movement shifting from concept to reality, the accelerating fusion of traditional finance and DeFi, and the convergence of AI and digital assets giving rise to a "machine economy."
Dr. Rocky Yip also revealed that the SFC will soon launch a "Digital Asset Accelerator." Through a designated agent mechanism, this initiative will provide regulatory guidance for market builders, exploring new market-making models and financing mechanisms.
This means that future compliant derivatives listed on Gate will not be limited to US-style leveraged ETFs. We could soon see tokenized bonds based on Hong Kong-compliant structures, green finance perpetual contracts, and even micropayment channels for AI agents.
Conclusion
Hong Kong’s story is undergoing a subtle narrative shift.
Rather than trying to replicate the old "global crypto free port" model, Hong Kong is leveraging its common law system, free capital flows, and the mainland’s collateral markets to build a new digital asset paradigm—one that is highly compliant, highly liquid, and institutionally driven.
Now may be the ideal window to reassess asset allocation strategies. Stablecoins are no longer just simple on- and off-ramp tools; they are becoming compliant bridges linking the Hong Kong dollar and on-chain government bonds. BTC and ETH are no longer merely "digital gold" and "public chain fuel"—they are now eligible collateral on the balance sheets of licensed Hong Kong banks.
When the first stablecoin license is issued in March, Hong Kong will officially move from being an "observer" in Web3 to becoming a "main port of call."
