Asia’s tokenization boom is shifting capital away from the West: Expert

Key Points

1. Japan's regulatory framework, including the Payment Services Act (PSA), has established institutional trust and allows stablecoins to hold up to 50% of reserves in low-risk assets.

2. Hong Kong has moved swiftly with initiatives like the Ensemble Sandbox, serving as a fast-track regulatory innovation hub for tokenization.

3. Japan's infrastructure, such as MUFG's security token issuance, demonstrates the maturity of its tokenization ecosystem.

4. Cross-border interoperability is flagged as a critical next milestone for scaling tokenized asset adoption, particularly between jurisdictions like Japan and Hong Kong.

5. Dubai's successful real estate tokenization projects highlight a growing global network effect, with innovation in one jurisdiction sparking progress in others.