Hong Kong to support commercial bank tokenization initiatives

Hong Kong Chief Executive John Lee has announced plans to foster the development of digital assets, the Shanghai Securities News reported. In a policy address, Lee stated that the Hong Kong Monetary Authority (HKMA) plans to support commercial banks in launching tokenized deposits and trading tokenized real-world assets (RWA). He added that the Securities and Futures Commission (SFC) is considering expanding the range of digital asset products and services available to professional investors, provided that robust investor protections are in place. The announcement follows previous moves by Hong Kong to establish a regulatory framework for cryptocurrency exchanges and stablecoin issuers, as well as guidelines requiring licensed platforms to strengthen their custody systems for client assets.