The Hong Kong government has initiated work on a legal and regulatory framework to promote the issuance and trading of tokenized bonds within the financial services and treasury sectors. Deputy Secretary for Financial Services and the Treasury, Chen Haolian, announced at the Web5 Ecosystem Summit that the government is considering various reform measures to adopt tokenization technology in the bond market. The objective is to diversify the range of tokenized and digital asset products available regionally. This move is part of Hong Kong’s efforts to modernize its financial market by integrating advanced technology to provide investors with more transparent and efficient investment opportunities. Tokenized bonds enable bonds to be converted into digital tokens, facilitating easier and cost-effective trading through blockchain technology. Concurrently, the Hong Kong Monetary Authority is advancing digital currency projects, encouraging commercial banks to introduce tokenized deposits and focusing on facilitating the trading of real tokenized assets. These initiatives aim to strengthen Hong Kong’s position as a financial hub in Asia by embracing cutting-edge financial technologies. With the growth of digital currency and tokenized bonds, the financial market in Hong Kong is expected to experience increased transparency, liquidity, and investment opportunities, although legislative and supervisory challenges will also arise, which the government prioritizes addressing.
Source: binance
