According to a report by the Hong Kong government news release, the Hong Kong Monetary Authority has launched a regulatory incubator for distributed ledger technology (DLT) to assist banks in responsibly exploring the potential of DLT. The aim is to help banks fully leverage DLT's potential while effectively managing associated risks. It is reported that the incubator will enhance the risk management capabilities of individual banks and the banking sector as a whole, particularly concerning risks that may arise when banks launch services that simultaneously involve DLT banking infrastructure and traditional banking infrastructure (such as deposits and loans). For individual banks, the incubator will provide a one-stop regulatory platform, allowing banks to confirm that they have fully implemented relevant risk management measures before the comprehensive rollout of DLT projects; engage with the dedicated team of the Monetary Authority for regulatory advice, and choose to conduct practical tests as needed to verify and refine risk management measures in a pragmatic and continuously evolving manner. The incubator will also introduce a series of measures to promote awareness and understanding of best practices in DLT risk management within the banking industry, including regulatory guidelines, industry sharing sessions, and forward-looking research projects that will ultimately help enhance the banking sector's capability to adopt DLT solutions.