Web3, now beyond concept and into implementation. Have you ever imagined a world where your real estate, bonds, or currency shed their physical forms, are fractionalized and traded on a blockchain, and transact anywhere in the world in mere seconds? The Web3 Carnival, recently held in Hong Kong in April 2026, clearly demonstrated that such a future is no longer a fantasy but an immediate reality. At this event, various global experts and policymakers elaborated on the vision of Web3, asserting that practical use cases are already emerging across the financial system. Particularly noteworthy is the fundamental shift in the focus of discussion. For the past few years, the industry has primarily been engaged in repetitive validation of 'whether Web3 holds true value.' However, at the Hong Kong Web3 Carnival 2026, statements from key speakers, including Hong Kong Financial Secretary Chan Mo-po, Ye Zhiheng, and Fan Wenzhong, Executive Committee Member of the China Finance Society, clearly revealed that Web3 is no longer a technological proposition to be proven, but has begun to enter an institutionalized and structured implementation phase. This signifies not merely technological advancement, but a restructuring of the entire financial system's operational methods. So, what does Web3 mean beyond simple technological innovation? Hong Kong Financial Secretary Chan Mo-po, a key figure at the event, emphasized in his speech that "Web3 and Tokenization are the keys to fundamentally transforming the existing financial structure." He pointed out that the types of assets included in the tokenization process have expanded from initial cryptocurrencies to include currencies, bonds, real estate, and future revenue rights, explaining that the digitalization of assets is progressing broadly beyond mere cryptocurrencies. As assets are traded and managed on a blockchain, financial capital is entering an era where 'how it flows more efficiently' is more important than 'who owns it.' Notably, one of the concepts highlighted at this event was 'tokenization.' However, the essence of tokenization is far more profound than many people imagine. As Financial Secretary Chan Mo-po repeatedly emphasized, tokenization is not merely 'on-chaining' assets by putting them online. Its core lies in the shift of the financial resource allocation mechanism from 'institution-driven' to 'rule-driven.' This signifies a fundamental change in the logic of financial structure. In traditional financial systems, asset liquidity, divisibility, and barriers to participation were determined by centralized intermediary institutions. Institutions such as banks, securities firms, and real estate brokers decided who could access assets and under what conditions they could be traded. However, under the tokenization framework, these constraints are reconfigured as rules on the blockchain. Assets can be fractionalized and circulated, with settlement and distribution occurring in a programmatic manner. This enables easier fractionalization of assets, increased liquidity, and lowered barriers to participation. This shift means that finance is no longer a question of 'who owns the assets,' but 'how the assets flow.' In the past, a few allocated assets, but under the new framework, assets have begun to flow with lower friction to a broader range of participants. As the role of intermediaries diminishes and automated rules take their place, assets can be distributed more efficiently to a greater number of participants. This transition streamlines financial participation, removes existing constraints, and ultimately enables expansion into larger and more diverse markets. The Evolution of Tokenization and the Advent of a New Financial Structure At this juncture, what Hong Kong aims to build is not merely a 'Web3 industry cluster.' Hong Kong's vision is to establish an 'operating system' for the next-generation financial system. This strategy involves becoming a central hub for asset trading while also serving as a center for experimenting with and disseminating new financial structures. Through this, Hong Kong seeks to lay the groundwork for larger-scale financial innovation in the future. Such changes cannot be achieved by technology alone; they must be accompanied by institutional support and the sophisticated design of regulatory frameworks. Even more intriguing is the integration of Artificial Intelligence (AI). In the financial system, AI is highly unlikely to remain merely a tool for assisting decision-making. At the Hong Kong Web3 Carnival, Fan Wenzhong, Executive Committee Member of the China Finance Society, garnered significant attention by proposing the DAE (Decentralized Agentic Economy) framework, in which AI will play a crucial role as an economic agent. This framework suggests that in future economic systems, AI can function as an economic actor, moving beyond merely assisting decision-making. Committee Member Fan Wenzhong predicted, "The era will come whe
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