HashKey CEO: Asia is betting on asset tokenization

​Hong Kong is strengthening its position as one of Asia's leading cryptocurrency hubs. But how developed is the local market, and what opportunities does it offer investors? In an interview with Traders Union, HashKey Group Chairman and CEO Feng Xiao discusses the future of stablecoins, demand for tokenized assets, and the role of artificial intelligence in finance.

Why Hong Kong attracts crypto companies

Feng Xiao is the Chairman and CEO of HashKey Group, a company operating in Hong Kong's digital asset market. He also serves as Vice Chairman of China Wanxiang Group and Chairman of Shanghai Wanxiang Blockchain.

Before entering the blockchain industry, Feng Xiao co-founded Bosera Asset Management, one of China's largest asset management companies, where he served as Vice Chairman. He holds a Ph.D. in economics and has more than 25 years of experience in financial markets.

His experience gives him insight into the cryptocurrency industry's development from both traditional finance and blockchain perspectives. Feng Xiao pays particular attention to Hong Kong, where HashKey Group continues to expand its operations.

According to the executive, the local authorities' approach to cryptocurrency regulation has become one of the region's main advantages.

“Hong Kong is most definitely a crypto hub, most especially thanks to strong regulation that's sensible and clear. It's important to have a strong regulatory framework to nurture innovation and ensure that startups and existing players know the rules of the road and can deliver services in a way that both serves demand and protects consumers.”

For HashKey Group, the development of Hong Kong's crypto market has coincided with a new chapter in its corporate history. The company went public last year, gaining additional opportunities for international expansion. However, public company status also brings stricter corporate governance requirements.

“We continue to deliver across all of our business units and now have the benefit of global recognition and the ability for investors to support our expansion to new markets. Being a public company is definitely quite rigorous, and that has its benefits: I find the team more disciplined than ever, continuing to execute on our growth strategy.”

What role will stablecoins play in Asia?

Stablecoins have become one of the key areas of development in Hong Kong's cryptocurrency market. As U.S. dollar-pegged digital assets continue to dominate, local financial companies are developing alternative instruments for transactions denominated in Hong Kong dollars.

One such project is HKDAP, issued by Anchorpoint Financial with the involvement of Standard Chartered. HashKey Exchange joined its distribution in August 2026. However, Feng Xiao does not expect the stablecoin to become a widely used consumer payment instrument in the near future.

“We're still very much in the early days with HKDAP. It’s a small, specialized settlement instrument for now, and not intended to be a primary payment instrument for Hong Kong. The goal is to provide a localized counterpoint to dollar-dominated stablecoins for key business functions like payroll, treasury, and business settlement.”

Digital currencies could play a particularly important role in transactions involving tokenized financial instruments. Such transactions today often involve several intermediaries, complicating settlements and increasing the time required to complete them.

“A regulated HKD token can serve as the cash leg for tokenized bonds and funds, thus compressing the two-to-three-day settlement for flows like insurance premiums and cross-border corporate treasury.”

In the longer term, similar instruments could gain traction beyond Hong Kong. This would require greater regulatory alignment and the development of financial infrastructure connecting markets across the region.

“We're also hoping that Hong Kong's licensing model can become a template for other Asian markets to mirror so that we're building a stronger, more regionalized financial infrastructure that seamlessly connects to global finance.”

Which tokenized assets attract investors?

Tokenization is gradually expanding the ways traditional financial instruments can be used on blockchain networks. Beyond cryptocurrencies, investors are gaining access to digital versions of stocks, bonds, and investment fund shares.

However, demand for tokenized instruments varies by region. Feng Xiao highlights several asset categories attracting particular interest in Asia.

“In the markets where they're available, tokenized equities are hugely popular. And we've really only begun to scratch the surface when it comes to the types of assets that will be tokenized and traded onchain.”

One example is Franklin Templeton's tokenized U.S. government money market fund. Such products combine the characteristics of traditional investments with the capabilities of blockchain infrastructure.

“The strongest pull in Asia is toward bonds and money market funds, especially short-duration, yield-bearing products from government and high-grade issuers, like Franklin Templeton’s tokenized US government money fund. Investors know what they own, the yield is clear, and 24/7 settlement is a real benefit for investors.”

Beyond tokenized financial instruments, staking offers another way to earn returns on digital assets. Its growing adoption raises questions about whether cryptocurrency platforms could compete more directly with banks for customers' funds.

However, the HashKey Group CEO believes that the emergence of new investment products does not necessarily mean traditional financial services will be displaced.

“We've always believed that staking is complementary to existing financial options. Blockchain technology creates a larger financial market that expands what’s possible in finance; it’s not a zero-sum situation.”

Why Bitcoin miners are shifting toward AI

One of the notable trends in recent years has been the shift by some Bitcoin mining companies toward artificial intelligence infrastructure. Rather than focusing exclusively on mining, they are expanding into AI data centers and other computing infrastructure businesses.

This diversification allows companies to use their existing energy and technology infrastructure in new business areas. For investors, it creates additional opportunities while raising questions about the long-term attractiveness of Bitcoin mining itself.

Feng Xiao links these companies' decisions primarily to changing economic conditions.

“Ultimately, it’s all about what makes the most financial sense. Miners have had to contend with rising energy costs, as well as the reduction in mining rewards as Bitcoin matures. So those incentives are less appealing to many companies, who have thus decided to shift their capacity towards the booming business of compute.”

However, the shift toward artificial intelligence does not necessarily mean that companies will permanently abandon cryptocurrency mining.

“The economics of Bitcoin mining are also directly related to price. So as Bitcoin rises in price over time, some may return to mining as a revenue stream.”

How AI agents could transform financial management

HashKey previously identified AI agents as one of the major technology trends of 2026. Today, these systems are gradually moving beyond simple digital assistants and beginning to perform more complex tasks.

Their application in financial markets is particularly promising. Automated tools can analyze information, execute transactions, and help investors implement strategies without constant manual intervention.

According to Feng Xiao, the potential of this technology extends far beyond conventional trading algorithms.

“AI agents in finance are a tremendous opportunity. From popular strategies like Dollar Cost Averaging to more niche approaches like cross-chain arbitrage, AI agents can really deliver a lot of utility when deployed responsibly.”

The potential of automation is not limited to investing. Such systems could also change how customers interact with financial institutions in everyday life.

“Even for everyday banking tasks like monitoring accounts for overdrafts or identifying areas for savings, there’s immense value ready to be unlocked by AI agents.”

Feng Xiao is particularly interested in the development of more sophisticated models of artificial intelligence collaboration.

“I’m especially intrigued by multi-agent swarms, such as deploying a team of sub-agents that can handle specific tasks. It’s easy to see how savvy investors can build and customize their own unique approach to the markets. It’s a very exciting time!”

Do blockchain games have a future?

Several years ago, GameFi was considered one of the most promising sectors of the cryptocurrency industry. Gaming projects actively introduced tokens and NFTs, offering users the ability to own in-game assets and earn income by participating in digital economies.

However, interest in the sector has since faded. Even companies that once focused heavily on GameFi now mention it less frequently in their research and forecasts.

Feng Xiao believes that the concept of owning gaming assets remains relevant. However, its successful implementation depends on more than blockchain technology alone.

“Ownership of in-game assets is still enormously appealing, especially as non-blockchain gaming worlds like Roblox feature robust in-game economies. Adopting new technology can be uneven and sometimes the complexity of that technology can be a turnoff.”

Despite continued interest in digital assets, blockchain games have yet to achieve widespread adoption. Feng Xiao believes the situation could change as technology develops.

“As we make strides toward embedded digital wallets, more seamless payments infrastructure, and more mainstream acceptance of blockchain technology, we may see a resurgence in the future. It's also a reality that it's very expensive to make games and so the economics can be quite challenging, even with web3 primitives!”

Could regulation undermine decentralization?

As the cryptocurrency market becomes more closely integrated with traditional finance, debates over the future of decentralization are intensifying. Banks and investment companies are adopting blockchain technology while continuing to operate within government regulations and centralized corporate structures.

This raises questions about how closely such models align with the original idea behind cryptocurrencies, which emphasized direct asset ownership and reduced reliance on intermediaries.

However, Feng Xiao does not see the integration of cryptocurrencies into traditional finance as a contradiction.

“I don’t see it as a paradox. Regulation sets the rules for how products are offered and how consumers are protected - very important stuff. Also important is how these new technology tools are getting integrated into the mainstream financial system, which is a transformation in and of itself.”

In his view, blockchain's impact should be assessed not only by who provides financial services but also by the opportunities available to users.

“Decentralization was never about no rules. It’s about removing unnecessary middlemen, giving people direct ownership of their assets, and building systems that are transparent by design. Those ideas are being carried into traditional finance, not watered down by it.”

Another important issue is the future of self-custody. As regulated services develop, users will increasingly need to decide whom they trust to manage their digital assets.

“Both models will continue to exist side by side. Some users will want the protections of a regulated, custodial platform, and others will want to hold their own keys and use DeFi directly. That choice is the point.”

The cryptocurrency market could therefore evolve without a clear divide between traditional and decentralized finance. Banks will increasingly use blockchain for payments and asset transactions, while independent platforms will continue to offer alternative ways to participate in the digital economy.

For investors, this transformation could bring a wider range of financial instruments to choose from. However, the success of these technologies will depend not only on regulation and infrastructure but also on their ability to meet real market demand.