#hkma

➤ Hong Kong anticipates the launch of its first regulated stablecoins between mid and late 2026, following the licensing of two bank-backed institutions. ➤ Licensed issuers must adhere to strict reserve requirements, including holding eligible assets like bank deposits and high-quality debt securities, and will be under ongoing HKMA supervision. ➤ The city is also expanding its crypto regulatory framework to cover trading, custody, advisory, and management services, while taking action against unauthorized stablecoin providers.

➤ Hong Kong is piloting the use of its wholesale CBDC, e-HKD, for after-hours derivatives margin settlement. ➤ This initiative aims to reduce operational friction and enhance risk management by enabling 24/7 margin transfers, bypassing traditional banking cut-offs. ➤ The pilot signifies a move towards institutional use cases for CBDCs, integrating programmable money into traditional financial market infrastructure.

➤ Hong Kong Mortgage Corporation has completed the world's largest digital bond issuance, raising HK$12 billion and attracting HK$24 billion in orders. ➤ The blockchain-based issuance significantly reduced settlement time from five business days to three, demonstrating advancements in tokenized fixed-income markets. ➤ This landmark deal reinforces Hong Kong's strategy to become a leading international financial center for tokenized assets and encourages wider adoption of digital bonds.

➤ The Hong Kong Monetary Authority (HKMA) has launched a "Tokenized Bond Expert Group" with 21 institutions, including major global banks, to promote the adoption and expansion of tokenized bonds. ➤ The group will focus on policy measures, market practices, and technological innovation, building on HKMA's previous successful proof-of-concept projects, including the world's first tokenized government green bond. ➤ This initiative aims to solidify Hong Kong's position as an international digital finance hub and a 'digital gateway' connecting mainland China and global markets, with future focus on secondary market infrastructure and cross-border legal coherence.

➤ Hong Kong Monetary Authority (HKMA) has formed an expert group, including major banks like JPMorgan and HSBC, to advance tokenized bonds. ➤ The group will focus on reviewing rules, market standards, and infrastructure to support wider adoption and scalability of tokenized bonds. ➤ This initiative builds on Hong Kong's previous digital bond deals and aims to move tokenization beyond pilot programs into market practice.

➤ HashKey has joined the HKMA's Tokenised Bond Expert Group, signaling Hong Kong's RWA market's maturation beyond initial demand tests, with a recent sovereign issuance reaching HK$10 billion. ➤ The focus is shifting to settlement infrastructure, particularly through Project Ensemble, which pilots tokenized deposits and wholesale CBDC for faster, more efficient transactions, aiming to create liquidity and reduce risk. ➤ While the market shows promise with scaled issuances and improved settlement, near-term risks include limited participation in the controlled pilot environment, with success hinging on broader adoption by dealers, custodians, and buyers.

➤ Hong Kong has established a new expert group, including major financial institutions like JPMorgan and HSBC, to drive the expansion of tokenized bonds. ➤ The group will focus on reviewing policy measures, market practices, and technological innovations to support wider adoption and scalability of tokenized bond issuance and trading. ➤ This initiative builds on Hong Kong's previous successful issuances of tokenized green bonds, aiming to address practical issues and foster growth in the tokenized debt market.