Stablecoins and RWA tokenization shape Asia’s crypto rulebook in 2025

Asia’s crypto regulatory narrative in 2025 was less about grand new promises and more about something markets had been waiting years for — rules for actual implementation.

Stablecoins and asset tokenization emerged as the core themes of crypto regulation across the region, as regulators moved beyond high-level discussions toward concrete frameworks and live pilots, experts said.

“Against the backdrop of 2025 — where the U.S. has led a clear acceleration in crypto-friendly policymaking — APAC regulators have doubled down on delivering clear, proportionate rules and driving real regulatory implementation,” said Angela Ang, head of policy and strategic partnerships for APAC at TRM Labs. 

Eddie Xin, head of research at OSL Research, told The Block that Asia’s regulatory progress in 2025 has moved beyond debating frameworks to integrating stablecoins and asset tokenization directly into payment and settlement infrastructure.

The developments have set the stage for what many industry players expect to be a meaningful year for greater institutional participation in 2026. 

Hong Kong

Regulatory momentum was visible in Hong Kong in 2025. In August, the city’s long-awaited stablecoin law became effective, establishing a licensing regime for fiat-referenced stablecoin issuers. The move followed years of consultation and positioned Hong Kong among the earlier jurisdictions globally to create a dedicated stablecoin framework.

“Stablecoins were unmistakably in focus, in part because they are the most payment-like crypto asset and therefore hold the greatest promise of utility,” said Ang. “Regulators are prioritising stablecoins as a way to realise the benefits of blockchain in providing value transfer at the speed of the internet.”

Hong Kong regulators also pushed ahead on tokenization. Under Project Ensemble and related initiatives, the authorities worked with banks and market participants to test settlement models combining tokenized deposits with on-chain asset delivery. 

In November, the government launched pilots focused on “real value” tokenization, exploring how traditional financial instruments could be issued, traded, and settled on blockchain rails within a regulated environment.

Singapore

Singapore’s Digital Token Service Provider (DTSP) regime officially took effect in June, three years after the legislation was passed. 

Under the regime, DTSPs operating with a substantive presence in Singapore must secure a license and meet anti-money laundering obligations, regardless of whether they serve domestic clients.

The city-state has also advanced its tokenization agenda. In November, the Monetary Authority of Singapore said tokenization has moved beyond the experimental phase and is increasingly being deployed in commercial settings. 

As part of a recent trial, three banks — DBS, OCBC, and UOB — conducted interbank overnight lending transactions using a wholesale Singapore dollar central bank digital currency. The testing aligns with Singapore’s ambition to scale tokenized finance using safe settlement assets.

Japan, South Korea

Stablecoins emerged as a common theme in crypto developments across Japan and South Korea in 2025.

In Japan, regulators moved to strengthen oversight while supporting stablecoin experimentation. In November, the Financial Services Agency publicly backed a stablecoin pilot involving the country’s three major banks. 

Japan’s regulator is also weighing new requirements that would require crypto exchanges to establish emergency reserves to cover incidents such as hacks, Nikkei reported.

The regulatory momentum has prompted local firms to explore new product offerings. Six major Japanese asset managers, including Mitsubishi UFJ Asset Management and Daiwa Asset Management, are reportedly preparing to develop the country’s first crypto-based investment trusts.

In South Korea, banks and crypto firms are also advancing stablecoin initiatives. In September, crypto custody provider BDACS launched KRW1, a won-backed stablecoin, on the Avalanche network. 

While South Korea has yet to introduce a formal stablecoin framework, authorities have indicated efforts are underway to establish one.

What will define 2026?

Regulated onshore markets are set to play a larger role, said Tim Sun, senior researcher of HashKey Group.

“Hong Kong, Singapore, and Japan are all building regulated, onshore ecosystems led by licensed players. Slowly but surely, activity that used to sit offshore will move back home,” Sun said.

OSL’s Xin noted that Asia’s regulatory paths will be converging toward the normalization of digital asset issuance and real-world asset tokenization in 2026, with settlement increasingly relying on regulated stablecoins and tokenized money.

“In contrast, purely speculative use cases will face significantly higher compliance thresholds and capital requirements,” Xin added.

Chen Wu, CEO of Hong Kong-licensed crypto and tokenization firm EX.IO, struck a similar note, saying real-world asset tokenization will “define 2026,” calling its expansion “inevitable.”

“Put simply, Asia is moving into a fully institutional digital-asset era, and the stablecoin and tokenization infrastructure built in 2025 will be the foundation for more stable, sustainable growth in 2026,” said Sun of HashKey.

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