The Hong Kong Monetary Authority is seeking to grow the tokenization ecosystem as part of its four-pronged growth strategy for the fintech sector over the next five years.
In a statement On Wednesday during Hong Kong Fintech Week, the HKMA said the FinTech 2030 strategy will focus “on four strategic pillars” referred to as “dart,” covering data, artificial intelligence, resilience and tokenization across 40 initiatives.
“The HKMA will accelerate the tokenisation of real-world assets (RWAS), including financial assets, and lead by example by regulating the issuance of tokenised government bonds and exploring the concept of tokenising the funds exchange,” it said.
Along with the push for tokenization is the launch of a new StableCoin, E-HKD, issued by the HKMA, which recently completed A Pilot Program.
The Pilot Program saw the use of StableCoin for settlement of tokenized assets, offline payments and programmability.
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“Their settlements on blockchains will be enabled by new forms of digital currency, including e-HKD, tokenised deposits, and regulated stablecoins,” the latest statement read.
In addition, the HKMA is also looking to collaborate with industry players and central banks as it works to test tokenization plans through an upcoming pilot, Project Ensemble, which is set to launch “Soon.”
Part of the Fintech 2030 strategy also includes the integration of AI, which the HKMA aims to integrate into the financial system.
“By harnessing AI, the HKMA aims to boost access, responsiveness, and customization in banking services while maintaining transparency and accountability to ensure public trust,” the announcement read.
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