Hong Kong is eyeing decentralized finance (DeFi) and metaverse technologies as potential game-changers in the global fintech scene. The Hong Kong Institute for Monetary and Financial Research released two reports on the impact of these technologies on finance. DeFi, which grew from a $6 billion market cap in 2021 to over $80 billion in 2023, is seen as a largely untapped market. Despite issues around governance and compliance, the reports remain optimistic about DeFi's potential. Meanwhile, despite high interest, local financial institutions show moderate engagement with metaverse technologies.