- HKMA helps the common issuance of tokenized deposits and digital bonds.
- SFC Draft License Framework for Transactions, Custody, and Stubcoin Issuers.
- The brand new guidelines cowl Stablecoin issuers, digital asset transactions, and custody providers.
Hong Kong is bolstering its digital finance ambitions with its coverage blueprint that locations tokenization on the coronary heart of financial institution innovation.
On the 2025 Coverage Handle, John Lee’s CEO outlined measures that inspired the Hong Kong Financial Authority (HKMA) to deploy tokenized deposits and broaden town’s stay tokenized asset transactions.
Hong Kong Mission Ensemble Drives Tokenized Sediments
Lee confirms that HKMA will proceed to advance the undertaking ensemble, together with encouraging industrial banks to introduce tokenized deposits and selling stay buying and selling of tokenized property, equivalent to settlement of tokenized cash market funds.”
The initiative goals to embed financial institution liabilities, represented as blockchain-based tokens, into mainstream monetary operations. These deposits may promote sooner and extra environment friendly settlement of cash market funds and different monetary devices.
To make sure a managed rollout, HKMA will make the most of a regulated sandbox to permit banks to check tokenized merchandise whereas enhancing danger administration.
Tokenized bonds have change into a traditional operate
Past deposits, the federal government intends to make tokenized bond issuance a everlasting part of Hong Kong’s monetary markets. After profitable pilots together with inexperienced bonds, HKMA will normalize the issuance course of to assist construct a deep, digital bond market that may be accessed by each native and worldwide traders.
Associated: Beijing blocks state-owned enterprises from Stablecoin Enterprise in Hong Kong
Hong Kong’s international monetary function
The coverage handle additionally units up a complete regulatory framework for digital property. Hong Kong implements a construction for Stablecoin issuers and drafts licensing guidelines for digital asset buying and selling and custody providers.
The Securities and Futures Fee (SFC) is on the lookout for methods to broaden the vary of digital asset merchandise accessible to skilled traders whereas prioritizing investor safety. Automated reporting and information monitoring instruments will likely be launched to observe dangers equivalent to cross-border tax evasion.
The authorities positioned these tokenization initiatives as a part of a plan to take care of Hong Kong among the many world’s main monetary hubs.
Along with increasing the bond market and strengthening inventory market guidelines, town goals to broaden its function in cross-border digital commerce and worldwide use of the Chinese language yuan.
Associated: Hong Kong strikes to compete globally by softening crypto guidelines for native lenders
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