Two completely different capital narratives

The digital asset market in 2024 witnessed two distinct phenomena. On one hand, the global frenzy sparked by Trump's cryptocurrency launch saw political influence instantly monetized, with retail investors chasing rising and falling prices, a typical "one-time harvest" pattern. On the other hand, Ju.com (formerly JuCoin) and xBrokers quietly established a presence in Hong Kong, attempting to use technological innovation to address the structural issues of traditional financial markets.

This contrast reveals a watershed in the development of digital finance. The former relies on sentiment and celebrity influence, essentially a game of capital redistribution. The latter attempts to build sustainable financial infrastructure, connecting traditional capital markets with the digital economy. When the concepts of speculation and construction collide in the same era, we witness two completely different paths.

Ju.com chose a more difficult but more meaningful path. They invested significant resources in developing underlying technology, building a compliance framework, and cultivating a long-term ecosystem. The logic behind this choice is simple: true value creation requires time and patience.

The deep troubles of Hong Kong's financial market

Hong Kong's status as an international financial center is facing unprecedented challenges. On the surface, the Hong Kong stock market remains a massive HK$7 trillion market, home to numerous high-quality companies. However, a deeper look reveals that this market is experiencing a silent liquidity crisis.

The data reveals a worrying trend. Average daily trading volume for Hong Kong stocks has fallen by over 40% from its historical peak, and many fundamentally sound companies remain undervalued. Tech giants like Tencent and Alibaba continue to trade at valuations lower than their US counterparts, even though they possess no significant disadvantages in profitability or growth prospects. This "Hong Kong discount" phenomenon has become a market norm.

There are multiple reasons for this predicament. Geopolitical uncertainty has made international investors cautious about Chinese concept stocks, and the expanding US sanctions list has heightened investor concerns. Furthermore, mainland capital flows southbound are subject to various restrictions, and the quota and scope of the Hong Kong-Shanghai Stock Connect remain constrained. The homogenous investor structure has left the market lacking sufficient diversification.

The deeper problem lies in the fact that traditional solutions have reached their limits. While regulatory reforms, from relaxing listing requirements to launching the Hong Kong-Shenzhen Stock Connect, have provided marginal relief, they have failed to fundamentally transform the market landscape. These measures remain confined within the traditional financial framework, unable to transcend geographic and institutional boundaries and truly activate global liquidity.

Technological breakthroughs in the RWA wave

The wave of tokenization of real-world assets is reshaping the financial landscape. From virtually zero in 2020 to a market capitalization exceeding $290 billion by 2025, the RWA market has experienced remarkable growth. This explosive growth is driven by significant advancements in technological maturity and a gradually improving regulatory environment.

Hong Kong occupies a uniquely advantageous position in this wave. The release of the Digital Asset Development Policy Declaration 2.0 and the entry into force of the Stablecoin Ordinance provide a clear legal framework for the development of RWAs. Meanwhile, the EU's MiCA Act and Japan's revised Payment Services Act are paving the way for the compliant operation of digital assets.

The emergence of xBrokers at this critical juncture holds special significance. As a global RWA broker, it proposes a novel "liquidity organizer" model. Unlike traditional brokerages, which focus on intermediary services, xBrokers seeks to serve as a bridge connecting traditional assets with the digital economy.

Their three-tiered architecture reflects deep thinking. The bottom layer is a solid asset foundation, ensuring authenticity through a 1:1 real stock anchoring and independent third-party custody to safeguard investor rights. The middle layer is the data indexing layer, integrating real-time data from global exchanges and providing standardized interfaces to support ecosystem expansion. The top layer is the incentive layer, enabling value sharing through staking mining and referral rewards.

The innovation of this architecture lies in its simultaneous solution of three key issues: asset authenticity, technical standardization, and incentive compatibility. Traditional RWA projects often focus on one of these three aspects but neglect the other. xBrokers attempts to achieve a comprehensive breakthrough through systematic design.

Ju.com Ecosystem Strategic Layout

The Ju.com platform's global user base provides crucial support for this transformation. With over 50 million users in over 30 countries, it forms a vast, mobile network. The value of this global presence is particularly evident at this moment.

Assuming 10% of this user base converts into Hong Kong stock investors, with an average investment of HK$10,000 per person, this would bring HK$50 billion in incremental capital to the Hong Kong stock market. This figure is equivalent to two months of Hong Kong stock market trading volume, and its significance for improving liquidity is self-evident.

The launch of the Early Bird Subscription Zone marks the birth of a completely new financing model. The traditional IPO process is lengthy and costly, often prohibiting small and medium-sized enterprises from pursuing it. The Early Bird Subscription Zone uses digital means to allow ordinary investors to directly participate in private equity financings of listed companies, using digital currencies such as USDT, JU, and AIC to subscribe for shares. This model is innovative not only in lowering the barrier to entry but also in improving the fairness and transparency of distribution.

The staking mechanism is cleverly designed. Investors not only receive traditional stock appreciation and dividends, but also earn computing power points through staking and participate in X token mining. This multi-revenue structure, unattainable in traditional finance, provides investors with an additional risk buffer, offering some protection even during periods of stock price volatility.

A historic turning point in global monetary policy

The current global monetary policy environment is undergoing a significant turning point. The Federal Reserve has initiated its interest rate cut cycle, and the European Central Bank, the Bank of England, and the Bank of Canada are all considering or have already implemented easing policies. This global monetary easing has created a favorable environment for rising asset prices.

Historical experience shows that in an environment of ample liquidity, risk assets tend to experience systematic gains. The current situation is even more unique because major economies around the world have almost simultaneously shifted to loose policies, a historically rare phenomenon.

In this environment, Hong Kong stocks are experiencing a significant valuation slump. Compared to the US and A-share markets, Hong Kong stocks' overall valuations are significantly lower. Many companies have strong fundamentals, stable profits, and high dividend yields, yet valuations have been suppressed for a long time. This divergence between valuations and fundamentals presents a rare window of opportunity for investors.

More importantly, the Chinese government continues to strengthen its support for Hong Kong's status as a financial center. Connectivity mechanisms such as the Shenzhen-Hong Kong Stock Connect and the Cross-Border Wealth Management Connect have been continuously improved, injecting new vitality into the Hong Kong market. With this policy support, Hong Kong is expected to re-establish its important position in the global financial system.

Innovative breakthroughs in business models

xBrokers' asset-light operating model offers significant scalability advantages. By connecting various participants through a technology platform, we diversify our revenue streams. Transaction fees provide a stable base income, issuance service fees demonstrate the platform's professional value, and data indexing fees open up new profit opportunities.

The core advantage of this model lies in the value amplification of network effects. More investor participation leads to better liquidity, which attracts more high-quality assets, which in turn attracts more investors. Once this positive cycle is established, it will create enormous potential for value growth.

Financial projections demonstrate the potential of this model. From $1 billion in assets under management and $20 million in annual revenue in 2025 to $500 billion in assets under management and $20 billion in annual revenue in 2027, this growth trajectory reflects the enormous potential of the RWA market. More importantly, the net profit margin, which can be maintained at a high level exceeding 85%, demonstrates the cost advantages of the asset-light model.

Security guarantee for technological innovation

The 1:1 real-world peg mechanism is xBrokers' most significant technological innovation. In a digital asset market flooded with virtual derivatives, users often struggle to determine the exact asset they are purchasing. xBrokers, through partnerships with licensed brokerages, ensures that users are purchasing genuine shares, with their holdings directly registered in their names.

Achieving this level of transparency requires complex technical support. APIs synchronize stock prices and transaction data in real time, smart contracts automate equity changes, and third-party escrow mechanisms ensure asset security. Each step requires precise coordination, and any failure could jeopardize the credibility of the entire system.

The construction of a data indexing layer is also crucial. It integrates real-time data from major global exchanges, monitors market and systemic risks in real time, and provides standardized interfaces for third-party developers. Building this infrastructure requires significant technical investment and ongoing operational costs, but it lays a solid foundation for the healthy development of the entire ecosystem.

Strategic opportunities in the regulatory environment

The diverging global regulatory landscape creates unique strategic opportunities for Hong Kong. Hong Kong's policies are globally recognized for their openness and forward-looking nature. The release of the Digital Asset Development Policy Declaration 2.0 and the Stablecoin Ordinance provide a clear legal framework for the development of RWAs. This regulatory certainty is crucial for long-term investment and business planning.

In contrast, other major financial centers have adopted a more conservative regulatory stance. While Singapore is exploring the application of RWAs through "Project Guardian," regulations remain relatively strict. While the EU's MiCA legislation provides a unified framework, implementation remains uncertain. While the US's stance is gradually becoming clearer, regulatory disparities vary significantly across states, resulting in relatively high compliance costs for businesses.

Hong Kong's strengths lie not only in its advanced regulatory policies but also in its unique geographical location and financial foundation. As a bridge connecting the East and the West, Hong Kong possesses a unique international advantage. Its mature financial markets and abundant professional service resources provide strong support for the development of RWA business.

xBrokers' compliance strategy leverages these advantages of Hong Kong. It applies for relevant licenses in major jurisdictions, establishes a comprehensive compliance management system, and conducts regular third-party audits. This comprehensive compliance approach not only ensures the legitimacy of its business but also lays the foundation for future international expansion.

The far-reaching significance of market impact

The innovative model of Ju.com and xBrokers will have a profound impact on the Hong Kong stock market. The most immediate impact will be a significant improvement in liquidity. As global digital asset investors begin to pay attention to Hong Kong stocks, and as staking mechanisms attract long-term capital, the liquidity issues that have plagued Hong Kong stocks for years will be effectively alleviated.

The restructuring of the valuation system may represent a more profound change. International investors will bring diverse valuation criteria and investment philosophies. When investors from diverse backgrounds use different criteria to evaluate Hong Kong-listed companies, the efficiency of value discovery will be significantly improved. Undervalued companies with excellent fundamentals are expected to regain market recognition.

Improving corporate financing facilities will transform the overall landscape of the Hong Kong stock market. The Early Bird Subscription Zone provides new financing channels for small and medium-sized enterprises, which often possess greater growth potential and innovation capabilities. When more high-quality emerging companies enter the Hong Kong stock market, the overall vitality and attractiveness of the market will be enhanced.

The success of this model will also have a demonstrative effect on the global RWA market. Its technical standards and business model will be adopted by other markets, and Hong Kong's regulatory experience will serve as a reference for other jurisdictions. This successful experience will drive the RWA market to expand into other asset classes, such as bonds, real estate, and art.

Profound changes in investor behavior

New investment tools and mechanisms are changing investor behavior. In traditional investing, average investors are often excluded from high-quality investment opportunities, forcing them to take on higher risks in the secondary market. The emergence of early bird subscription zones disrupts this pattern, giving average investors the opportunity to participate in early-stage financing for companies.

The diversification of income structures changes the risk-return balance. Traditional stock investments primarily generate returns from stock price fluctuations and dividends, which results in relatively concentrated risk. The introduction of staking mining adds a new source of income to investment portfolios, and this multi-income structure diversifies risk to a certain extent.

Increased participation may be the most significant change. Mechanisms like staking and mining not only provide economic incentives but, more importantly, strengthen investor loyalty to platforms and projects. When investors transition from passive providers of capital to active participants in the ecosystem, the stability and sustainability of the entire market will be enhanced.

The significance of this change goes beyond simply finance. It represents a new attempt to democratize finance, giving more people the opportunity to participate in wealth creation. When technological innovation can truly serve the interests of ordinary investors, we see the right direction for the development of FinTech.

Strategic vision for future development

xBrokers' development roadmap reflects clear strategic thinking. The first phase focused on stock-based RWAs, establishing technical standards and a user base through the Hong Kong and US stock markets to validate the feasibility of the business model. This focused strategy avoids premature diversion of resources and ensures the quality and competitiveness of core products.

The second phase of the expansion plan demonstrates even greater ambition. The introduction of fixed-income products such as bonds and ETFs will attract the attention of institutional investors, bringing larger funds and more stable revenue streams to the platform. Deeper integration into the DeFi ecosystem will open up new application scenarios and value creation opportunities.

The third phase, "Everything on the Blockchain," holds the most ambitious vision. The digitization of traditional assets like real estate, art, and commodities will create an unprecedented global asset market. This democratization of assets will fundamentally transform how people think about investing and wealth management.

The direction of technological evolution is also worth keeping an eye on. Cross-chain interoperability will enhance user experience, AI-powered robo-advisors will provide personalized services, and privacy-preserving technologies will ensure user data security. These technological innovations will further solidify the platform's competitive advantage.

The importance of ecosystem collaboration cannot be underestimated. Collaboration with traditional financial institutions will bring more resources and expertise to the platform, communication with regulators will ensure compliance in business development, and the construction of a technical community will promote innovation and ecosystem prosperity.

The contemporary significance of historical opportunities

The Ju.com Hong Kong Stock Liquidity Global Digital Summit marks the beginning of a new era. This isn't just a business event or product launch, but a milestone in the deep integration of traditional finance and the digital economy. Looking back at history, we find that every financial innovation is accompanied by technological advancement and institutional change.

The current moment holds special historical significance. The onset of a global monetary easing cycle has created a favorable environment for rising asset prices. The rapid development of the RWA market has provided ample room for technological application. And Hong Kong's forward-looking regulatory policies have paved the way for compliance innovation. The confluence of these factors has created a rare window of historical opportunity.

For investors, this is an excellent opportunity to participate in this historic transformation. The triple combination of Hong Kong stocks' low valuations, loose global liquidity, and the dividends of technological innovation has created a rare investment opportunity. The early bird subscription area is about to open, and the staking mining mechanism provides multiple income guarantees. The value amplification of network effects is becoming apparent.

For businesses, this represents an innovative path to breaking through development bottlenecks. The limitations and inefficiencies of traditional financing channels will be offset by more flexible and efficient digital solutions. Direct access to global capital is being established, creating opportunities to enhance brand value and influence.

For Hong Kong, this presents a strategic opportunity to re-establish its status as an international financial center. Its first-mover advantage in digital financial infrastructure will translate into long-term competitiveness. Its leading role in regulatory innovation will attract more international capital and high-quality projects, further strengthening its role as a bridge for Eastern and Western capital integration.

The course of history is often driven by individuals and institutions that dare to innovate and transform. When the boundaries of traditional finance are redefined, when the potential of the digital economy is fully unleashed, and when the flow of global capital becomes freer and more efficient, we will witness a more open, inclusive, and prosperous financial future.

The Hong Kong Summit on September 20th will be the starting point for all of this. The vision of new liquidity, a new ecosystem, and a new Hong Kong is moving from concept to reality. Those who are keenly aware of the changing times and actively participate in the transformation process will reap rich rewards from this financial revolution and become a vital force driving historical progress.