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

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

The review results show 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 batches of landmark tokenized bonds issued 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 a legal review to promote the wider application of DLT in the fixed income market and digital asset space, including allowing the electronic execution of tokenized bond issuance documents and exploring concepts such as the "possession" and "transfer" of tokenized fixed-income products.