HKMA deepens Hong Kong’s tokenised capital markets strategy

The Hong Kong Monetary Authority (HKMA) has convened a Tokenised Bond Expert Group, to support the development and scalability of tokenised bonds in Hong Kong’s fixed income market.

Member institutions of the Expert Group are representatives from industry associations, financial institutions, legal advisory firms, as well as financial infrastructure and technology providers. Building on the progress achieved so far through the HKMA’s various tokenised bond-related initiatives, the Expert Group will collectively explore policy measures, market practices, and innovations.

In May, the HKMA hosted the first series of Expert Group discussions, which views were exchanged on Hong Kong’s current legal and regulatory regime and its application to tokenised bond issuance and transactions. The feedback received provided reference for the HKMA’s ongoing work with the Financial Services and the Treasury Bureau on reviewing and identifying potential enhancements to Hong Kong’s legal and regulatory regime to facilitate the broader adoption of tokenisation technology in the fixed income market. Details of the relevant exercise will be announced separately.

The HKMA will continue to engage with Expert Group members to deep dive into various topics pertinent to tokenised bond market development, and will review and update the composition of the Expert Group as needed.

Re-disseminated by Wealth and Society