Hong Kong is witnessing a dynamic growth in its fintech sector, particularly fuelled by the burgeoning tokenization market. The city houses over 1,100 fintech companies and ranks globally amongst leaders in asset management, according to Hong Kong InvestHK. A key driver of this growth lies in the entrance of major traditional institutions into the tokenization space. Recognizing this momentum, the Hong Kong Monetary Authority has introduced a regulatory sandbox. This initiative offers support for innovation within various areas like asset management, supply chain finance, fund management, and sustainable finance, encouraging both regulatory compliance and new ventures.