Hong Kong Pulls Ahead of Singapore in the Crypto Treasury Race

Across Asia, Hong Kong and Singapore have long competed to become the region’s top hub for digital assets. In 2025, this rivalry has entered a new phase, with Hong Kong gaining an edge in attracting crypto treasury, Web3 companies, and institutional players. This shift reflects more than just policy updates. It signals a deeper change in how companies choose locations that offer strong regulation, access to capital, and room for innovation.

Hong Kong’s Regulatory Momentum and Its Growing Appeal

Hong Kong’s rise is driven by a clear commitment to structured, dependable regulation. Over the past two years, the city has introduced bank-level rules for stablecoins and rolled out official licenses for virtual asset trading platforms. These steps give institutions the confidence to move capital, manage treasuries, and experiment with tokenized assets without facing legal uncertainty.

Industry experts note that Hong Kong acted quickly at the right moment. As firms across the world looked for stable environments after turbulent periods elsewhere, Hong Kong opened its doors with clarity and speed. More than twenty platforms are now licensed to operate, providing companies with reliable access to both fiat and crypto channels.

This approach is already drawing results. Several major firms have moved their headquarters or expanded operations to Hong Kong, especially between 2024 and 2025. Local programs offering grants and support for blockchain projects add to the appeal. With regulators preparing to allow approved companies to issue stablecoins in 2026, internal estimates suggest as much as $10 billion in institutional flows could enter the city’s digital asset ecosystem. This level of confidence puts Hong Kong ahead in the treasury competition for now.

Singapore’s Strong Foundations and Its Slower Pace in 2025

Singapore has long been considered Asia’s leader in fintech innovation. Its Payment Services Act set high standards for licensing and compliance, and its early trials in tokenizing assets drew global attention. The country continues to host major companies, including stablecoin giants and crypto infrastructure firms, and maintains a strong talent pool with thousands of blockchain professionals.

However, 2025 has highlighted some limitations. Singapore remains focused on cautious, step-by-step approvals. While this ensures safety, it has slowed progress in areas like stablecoin licensing and tokenized treasury programs. Only a small share of licensed entities currently support these treasury-specific services, which has pushed some companies to explore alternatives. In addition, several enforcement actions in 2024 created a sense of caution among firms unsure about navigating strict rules.

These factors have not weakened Singapore’s overall position as a global fintech hub, but they have created room for Hong Kong to grow faster in the short term. Singapore still offers advantages in talent density and its connection to the broader Southeast Asian region. If it accelerates approvals, especially in areas like ETFs and asset tokenization, its competitive position could strengthen again.

The Growing Importance of Crypto Treasury for Big Organizations

Crypto treasuries, which involve companies holding digital assets for yield, payments, or risk management, have expanded to around $200 billion globally in 2025. Asia now accounts for more than a third of this activity, driven by firms seeking faster settlements, lower costs, and inflation protection.

Hong Kong’s recent momentum is visible in the companies relocating to its Cyberport and Central districts. Access to grants, licensed platforms, and regulated stablecoins allows these firms to run efficient treasury operations. The region’s cross-border strengths are especially valuable. Stablecoins issued under Hong Kong’s rules could eventually reduce remittance costs by significant margins, making them attractive for companies with international flows.

Investors also benefit from these developments. Access to regulated platforms opens doors to strategies such as generating stablecoin yields, using tokenized deposits, or hedging currency risk with digital assets. If adoption continues at this pace, total value locked in the region could rise by roughly twenty percent by mid-2026.

Hong Kong’s growing advantage over Singapore in the crypto treasury landscape shows how quickly the balance can shift when regulation and innovation align. Clear frameworks, strong licensing systems, and active support for Web3 companies have made Hong Kong a preferred destination for institutions seeking stability and growth.

Singapore remains a major player with deep expertise and global recognition, but its more measured pace has slowed its momentum this year. As both hubs continue to refine their approaches, Asia’s digital asset market is likely to expand even faster, giving investors and companies more opportunities than ever before.