The financial landscape is undergoing a seismic shift, largely driven by blockchain technology, as highlighted during the 2025 Hong Kong Web3 Festival. This significant event brought together industry leaders, regulators, and technology enthusiasts at the Hong Kong Convention and Exhibition Center to explore the future of digital finance.
The Symbiosis of Technology and Finance
Xiao Feng, the chairman and CEO of the HashKey Group, delivered an impactful keynote address, emphasizing the correlation between financial revolutions and technological advancements. He pointed out that historical financial tools, such as bank credit during the British Industrial Revolution and venture capital in Silicon Valley’s tech boom, were pivotal in enabling these eras of innovation.
The Regulatory Context and Market Dynamics
A focal point of Xiao’s speech was the recent ruling by the U.S. Securities and Exchange Commission, which classified dollar-backed stablecoins as non-securities. This ruling is seen as a significant step that may allow more financial institutions to engage in monetary creation processes, thereby fostering market growth.
Xiao forecasts that traditional exchanges will adapt by extending trading hours to compete with the around-the-clock nature of blockchain markets. “Traditional exchanges have no choice but to evolve,” he said, emphasizing the need for adaptation in a rapidly changing marketplace.
Hong Kong’s Vital Role in Financial Innovation
Among the notable attendees at the festival were prominent regulatory figures such as Paul Chan Mo-po, Hong Kong’s Financial Secretary, and other key personnel from financial regulatory bodies. Despite China’s strict cryptocurrency bans, analysts see Hong Kong as a crucial testing ground for blockchain technology, providing a regulated environment for innovation and potentially informing broader economic policies in mainland China.
Envisioning the Future of Finance
During his address, Xiao described blockchain as a revolutionary platform that transforms how financial transactions are recorded and processed. He outlined a shift from traditional banking systems to digital wallets, heralding a new era where cryptocurrency will be the driving force behind financial innovation in what he termed the fourth industrial revolution. He emphasized the potential of decentralized finance (DeFi) to empower individuals by granting them greater control over their assets, eliminating the need for intermediaries. In this landscape, he highlighted the role of various blockchain technologies, particularly Solana and the future of finance, which promise to enhance speed and scalability in transactions. Xiao urged investors and developers alike to embrace this paradigm shift, as it presents unprecedented opportunities for growth and inclusivity in the global economy.
The Hong Kong Web3 Festival continues through Wednesday, offering panels, networking opportunities, and demonstrations, underscoring the city’s central role in the evolution of digital finance. The combination of innovation, regulation, and market readiness presents unprecedented opportunities for developers, investors, and financial professionals alike.
