Hong Kong Monetary Authority and FSTB Announcement Promoting Wider Application of DLT in Digital Assets and Fixed Income Markets

Odaily Planet Daily News The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) have jointly announced the completion of the first phase review on promoting the further application of Distributed Ledger Technology (DLT) in Hong Kong's fixed income market.

The review results indicate that Hong Kong's current legal and regulatory environment is sufficiently flexible to support the issuance of tokenized bonds. This is best evidenced by the three landmark tokenized bond issuances by the Hong Kong government and the increasing number of corporate issuances (including those from issuers in Asia and the Middle East). The next phase will involve legislative review work to promote the wider application of DLT in the fixed income market and the digital asset space, including allowing electronic execution of tokenized bond issuance documents and exploring concepts such as the "possession" and "transfer" of tokenized fixed-income products.