Hong Kong has established a "regulatory incubator" to promote the correct adoption of blockchain technology by banks, as the region continues its efforts to become a cryptocurrency hub. On Wednesday, the Hong Kong Monetary Authority (the de facto central bank) announced that the incubator aims to help banks manage risks associated with the implementation of blockchain or DLT in experimentation zones.

The Hong Kong Monetary Authority stated that the incubator will focus on tokenized deposits, as the program aims to address the potential risks when banks shift to providing related services (such as deposits and loans) that will "span both DLT-based and traditional banking infrastructures."