Svmuu News: The Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau jointly announced that they have completed the first phase of a review aimed at promoting the further application of distributed ledger technology (DLT) in Hong Kong’s fixed-income markets.
The review found that Hong Kong’s current legal and regulatory environment is sufficiently flexible to support the issuance of tokenized bonds, as evidenced by the three landmark tokenized bond issuances by the Hong Kong government and the growing number of corporate issuances (including those from issuers in Asia and the Middle East). The next phase will involve a review of relevant legislation to promote the broader application of DLT in the fixed-income market and the digital asset sector, including allowing the electronic execution of issuance documents for tokenized bonds and exploring concepts such as “possession” and “transfer” of tokenized fixed-income products.