Hong Kong launches programme for blockchain banking solutions
Announced at the FiNETech4 event, the initiative provides banks with a dedicated HKMA team for guidance in early DLT adoption.
The Hong Kong Monetary Authority (HKMA) has introduced the ‘Supervisory Incubator for Distributed Ledger Technology’ to support banks in safely integrating distributed ledger technology (DLT). The initiative, announced during the FiNETech4 event, will provide banks with access to a dedicated HKMA team for guidance during live trials and early operations, focusing first on tokenised deposits.
The programme also aims to foster industry-wide growth by sharing best practices and conducting research to enhance understanding of DLT solutions. Arthur Yuen, HKMA deputy chief executive, emphasised the importance of creating a supportive environment for innovation, while Executive Director Carmen Chu highlighted the transformative potential of DLT, including real-time updates and autonomous reconciliation.
This move comes as Hong Kong strengthens its position in digital finance, with legislative proposals to add Bitcoin to national reserves and the approval of four additional licences for virtual asset trading platforms, bringing the total to seven.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
