Tokenized leadership in Asia attracts global capital

Maarten Henskens, head of protocol growth at Startale Group, said Asia’s leadership in tokenization is attracting the attention of global investors, and the region’s regulatory clarity has attracted capital that once was off-market.

“We’re seeing Western institutions set up operations in the Asia-Pacific region not only to follow capital but to participate in innovation,” he told Cointelegraph. Henskens pointed to a unique but complementary approach taken by Japan and Hong Kong to drive real-world asset (RWA) adoption.

Japan’s regulatory framework is intentional and forward-looking, establishing a strong foundation for institutional trust. “MUFG’s security token issuance infrastructure is a great example of how the ecosystem matures,” he noted.

Japan’s Payment Services Act (PSA) also allows trusted stables to retain up to 50% of their reserves in low-risk government bonds and time deposits, indicating a well-thought-out regulatory approach.

By contrast, Hong Kong has moved rapidly to launch a collection sandbox with a fast track regulatory innovation center. “While Japan is building long-term depth, Hong Kong is showing how agility can bring experiments to life,” Hunskens said.

Related: “Everything is in line” – a breakthrough moment in tokenization

Token bond and ETF drive adoption

The rise of tokenized bonds and ETFs has played a key role in bringing traditional investors into the cryptocurrency market. In Japan, real estate security tokens are giving retail investors access to the former closed market, sometimes more important than traditional J-Reits.

Tokenization simplifies fund management and increases transparency, allowing asset managers to connect directly with end users. “This combination of efficiency and increased transparency can make these products appeal to traditional investors who might otherwise not enter the cryptocurrency space,” Hunskens said.

He marked cross-border interoperability as the next major milestone. The “movement of seamless and compatible token assets across jurisdictions” is crucial to expanding adoption.

In Asia, this means connecting infrastructure between countries such as Japan and Hong Kong, and the global regulatory framework must reflect the technological reality of token financing, especially around settlements, compliance and custody.

Related: Dubai launches first license token real estate project in MENA area

The tokenization driving force in Dubai

Dubai is another Asian country that has made progress in tokenization. The city’s regulators have launched a progressive framework to encourage issuance and trading of tokenized securities, attracting global investors and fintech companies.

In May, Dubai’s Crypto regulator, Virtual Assets Regulator updated its guidance to include provisions for RWA tokenization. Attorney Irina Heaver told Cointelegraph that the rules provide issuers with clear avenues to initiate and trade token real estate assets.

Last month, Dubai Land Ministry worked with Vara and top developers to successfully sell it to and sell two apartments, with the entire product being sold within minutes. Buyers come from over 35 countries and it is worth noting that 70% are Dubai’s first-time real estate investors.