August 06, 2025
By Anjali Kochhar
As the West races ahead in crypto innovation, a quiet recalibration is underway in the East. Dr. Xiao Feng, Chairman and CEO of HashKey Group and widely known as the “Father of China’s Blockchain,” has ignited fresh debate with a bold prediction: Mainland China is poised to re-engage with crypto, starting with stablecoins and Real-World Assets (RWAs).
In a recent interview, Dr. Xiao shared his nuanced view of Asia’s digital finance landscape, especially the growing divergence between market enthusiasm and regulatory caution in Hong Kong. “There is a fever around stablecoins,” he observed, “but regulators remain extremely cautious.” This gap between innovation and oversight, he warned, must narrow for sustainable growth.
According to Xiao, the future of digital assets in Asia will unfold in clear stages. Stablecoins will be the entry point for China’s re-engagement, followed by tokenized RWAs representations of traditional financial assets on blockchain. Ultimately, he hinted, this evolution could even open doors to Bitcoin adoption in China.
He emphasised that stablecoins are often misunderstood. “They’re not just tools for payments,” Xiao stated. “Their real role is as a trading medium for volatile crypto assets.” More broadly, blockchain itself represents a shift in financial architecture from conventional record-keeping to real-time, peer-to-peer settlement systems that improve efficiency and lower costs.
Dr. Xiao also highlighted the importance of regulatory clarity and compliance. He praised Hong Kong’s focus on Anti-Money Laundering (AML) rules and argued that blockchain may offer even better AML mechanisms than traditional finance. “Everything is traceable on-chain,” he explained, calling it a transparent and effective tool for monitoring transactions.
However, he warned against the limitations of permission blockchains. “Stablecoins must be built on open, permission-less public chains,” he said. “Otherwise, they will not achieve mass adoption.”
Looking ahead, Xiao believes the industry’s next phase lies in digitising real-world assets. He stressed the need for regulated, onshore exchanges to support this transformation. Offshore models, in his view, are becoming obsolete.
He concluded that Hong Kong is strategically positioned to become the Wall Street of Asia, thanks to its legal structure and unique access to both global and Chinese markets. In contrast, he described Singapore’s strategy as that of the Switzerland of Asia, focusing more on neutrality. For the industry to thrive, he argued, a layered structure is required: decentralisation at the protocol level for fairness and transparency, and centralisation at the application level for efficiency and user protection.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
