The Hong Kong Monetary Authority and the Treasury Bureau announce that they will promote wider use of DLT technology in digital asset and fixed income markets

The Hong Kong Monetary Authority and the Financial Services and Treasury Bureau jointly announced that they have completed the first-phase review of promoting the further application of distributed ledger technology (DLT) in Hong Kong's fixed income market. The inspection results show that Hong Kong's current legal and regulatory environment is flexible enough to support the issuance of tokenized bonds. The three batches of iconic tokenized bonds issued by the Hong Kong government and the increasing number of corporate issues.(including issues from issuers in Asia and the Middle East) are the best proof. The next phase will launch a legislative review to promote wider use of DLT in fixed income markets and digital assets, including allowing electronic execution of tokenized bond issuance documents, exploring concepts such as "possession" and "transfer" of tokenized fixed income products.