Stablecoins and RWA Tokenization Define Asia's 2025 Crypto Regulatory Landscape

Asia’s crypto regulatory story in 2025 shifted from conceptual frameworks to practical implementation, with stablecoins and real-world asset (RWA) tokenization emerging as the region’s primary focus areas. Regulators across key jurisdictions prioritized workable rules and live pilots, setting the stage for expanded institutional involvement in 2026.

A Year of Concrete Progress Over Promises

While global attention often centered on U.S. policy shifts, Asia-Pacific regulators quietly advanced tangible frameworks. Experts describe 2025 as the year the region moved from debate to deployment, delivering “clear, proportionate rules” tailored to blockchain’s real-world applications.

“APAC has doubled down on regulatory implementation,” said Angela Ang, head of policy for APAC at TRM Labs. Stablecoins gained priority due to their payment-like utility, offering “value transfer at the speed of the internet.”

Eddie Xin, head of research, noted the emphasis on integrating stablecoins and tokenization into core financial infrastructure—payments, settlement, and capital markets.

Hong Kong Leads with Stablecoin Licensing and Tokenization Pilots

Hong Kong’s stablecoin ordinance took effect in August, establishing a dedicated licensing regime for fiat-referenced issuers—one of the earliest comprehensive frameworks globally.

The city also accelerated tokenization efforts through Project Ensemble and related initiatives. Banks and market participants tested tokenized deposit settlement combined with on-chain asset delivery.

November saw the launch of “real value” tokenization pilots, exploring regulated issuance and trading of traditional instruments on blockchain rails.

Singapore Advances DTSP Regime and Commercial Tokenization

Singapore’s Digital Token Service Provider (DTSP) framework became operational in June, requiring substantive local operators to obtain licenses and meet AML standards regardless of client base.

The Monetary Authority of Singapore declared tokenization had progressed beyond experimentation into commercial deployment.

A notable trial involved three major banks—DBS, OCBC, and UOB—conducting interbank overnight lending using wholesale SGD central bank digital currency, aligning with ambitions to scale tokenized finance via safe settlement assets.

Japan and South Korea Focus on Stablecoin Innovation

Stablecoins featured prominently in both markets. Japan’s Financial Services Agency endorsed a pilot involving the country’s three megabanks in November.

Regulators are also considering mandatory emergency reserves for exchanges to cover incidents like hacks.

Six major Japanese asset managers, including Mitsubishi UFJ and Daiwa, reportedly plan the nation’s first crypto investment trusts.

In South Korea, custody provider BDACS launched KRW1—a won-backed stablecoin on Avalanche—in September, ahead of anticipated formal regulatory guidance.

Outlook: Institutional Era Takes Shape in 2026

Industry voices predict 2026 will mark Asia’s transition to a fully institutional digital asset landscape.

Tim Sun, senior researcher, expects regulated onshore markets in Hong Kong, Singapore, and Japan to draw activity back from offshore venues.

Xin forecasts convergence around normalized digital asset issuance and RWA tokenization, with regulated stablecoins and tokenized money central to settlement.

Chen Wu, CEO of licensed firm EX.IO, called RWA expansion “inevitable” and the defining theme for 2026.

“Asia is entering a mature, institutional digital-asset era,” Sun concluded. “The stablecoin and tokenization foundations built in 2025 will support more stable, sustainable growth ahead.”