China International Development Corporation (CIDC), a Hong Kong-listed leather goods manufacturer, has acquired a 20% stake in Hong Kong-based asset tokenization startup NVT for HK$100 million (US$13.9 million).

The deal enables CIDC to use NVT’s tokenization technology for converting various assets in its leather goods operations into digital tokens.

CIDC also manufactures apparel and footwear and operates an industrial hemp business.

CIDC shares rose nearly 68% to HK$2.03, after the announcement.

NVT, founded in 2019, offers a platform for tokenizing real-world assets and mainly serves brokers, asset managers, and corporates.

The startup reported revenues of HK$2.5 million in 2024 and HK$1.1 million for H1 2025.

Asset tokenization is part of Hong Kong’s broader efforts to develop its digital assets sector.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Tokenization investments reflect massive growth expectations despite modest current revenues

CIDC’s $13.9 million investment for a 20% stake values NVT at approximately $70 million, despite the startup generating only HK$2.46 million ($315,000 USD) in revenue last year 1.

This represents a valuation multiple of over 200 times revenue, indicating either exceptional growth expectations or speculative enthusiasm around the asset tokenization sector.

The math becomes more striking when compared to traditional business valuations, where companies typically trade at single-digit to low double-digit revenue multiples depending on growth rates and profitability.

NVT’s revenue actually declined from HK$2.46 million in the previous year to an annualized HK$2.2 million based on first-half 2024 results, yet still commanded this premium valuation 1.

The investment suggests CIDC is betting on the broader market projection that real-world asset tokenization could grow from $0.6 trillion in 2025 to $18.9 trillion by 2033 2.

2️⃣ Market enthusiasm for tokenization drives dramatic stock reactions