Asia Tokenization Boom Attracts Global Capital
Asia is quickly emerging as a global hub for tokenizing real-world assets (RWAs), attracting institutional players with progressive regulatory frameworks. Japan, Hong Kong, and Dubai are leading the charge, with certain Western institutions relocating to the Asia-Pacific region.
Maarten Henskens, head of protocol growth at Startale Group, noted, “We’re seeing Western institutions set up Asia-Pacific operations not just to follow capital, but to participate in innovation.”
Japan’s Deliberate Path Toward Institutional Trust
Japan has made a cautious move, encouraging confidence through regulatory clarity. The nation’s Payment Services Act provides for stablecoins to use low-risk assets like government bonds to collateralize reserves, while industry giants like MUFG are building the security token environment.
“MUFG’s infrastructure for issuing security tokens is an excellent example of the ecosystem maturing,” said Henskens.
Hong Kong Bets on Agility and Innovation
Unlike Japan’s long-term vision, Hong Kong has come in with swift solutions such as the Ensemble Sandbox, a regulatory experimentation platform to experiment and deploy tokenization solutions at a fast pace.
“Where Japan is building depth over the long term, Hong Kong is showing that agility can make experimentation real,” Henskens explained.
Tokenized Bonds and ETFs Drive Adoption
Tokenized assets such as ETFs and bonds are bringing the asset class to the masses. In Japan, tokenized real estate products are accessible to retail investors, more so than certain traditional J-REITs.
“They offer fund transparency and efficiency,” Henskens said. “That appeals to traditional investors who are not crypto-savvy.”
He envisioned cross-border interoperability as the new frontier, where hassle-free, compliant transfer of tokenized assets will enable scaling adoption.
Dubai: A New Player in the Tokenization War
Dubai is not far behind. Its Virtual Asset Regulatory Authority (VARA) has recently updated regulations to include real-world asset tokenization. With a tie-up with the Dubai Land Department and major developers, two apartments were successfully tokenized and sold—entirely within minutes.
Lawyer Irina Heaver stated that the buyers were from over 35 countries, and 70% were first-time real estate investors in Dubai.
A Network Effect Across Asia
Asia’s diverse solutions are creating a network effect, Henskens argued. “Innovation in one jurisdiction triggers change elsewhere. Different regions may optimize for different results—and that is a strength, not a weakness.”.
With Japan’s stable frameworks, Hong Kong’s agility, and Dubai’s ambitious rollout, Asia is setting the pace for tokenization—pulling global capital and influence along with it.
