On May 7, the Hong Kong Monetary Authority (HKMA), which serves as both the central bank and financial regulator of Hong Kong, unveiled its plans to enhance the tokenization of assets.

This initiative, part of a broader strategy to modernize the financial sector, involves the formation of a new collaboration called the “Project Ensemble Architecture Community.” The community’s primary goal is to set standards for and accelerate the development of tokenization projects in Hong Kong.

Setting Standards for Tokenization

This collaborative group will consist of both regulatory bodies and private sector participants. From the regulatory side, members include the HKMA, the Securities and Futures Commission of Hong Kong, the BIS Innovation Hub Hong Kong Centre, and the CBDC Expert Group. The private sector will be represented by major financial and technology firms including the Bank of China (Hong Kong), Hang Seng Bank, HSBC, Standard Chartered Hong Kong, HashKey Group, Ant Digital Technologies, and Microsoft Hong Kong.

Tokenization involves creating digital versions of physical or non-physical assets, including fiat currencies, stocks, commodities, and real estate, which can be traded on blockchain platforms. This technology is seen as a significant step forward in diversifying investment portfolios and streamlining asset management. The HKMA’s initiative is expected to lead to more efficient and secure financial transactions, enhancing Hong Kong’s position as a global financial hub.

The community’s initial focus will be on creating a mechanism to facilitate seamless interbank settlements of tokenized deposits via wholesale central bank digital currencies (wCBDCs). These digital currencies are designed for use among banks and other financial institutions to streamline operations and improve security.

Exploring and Testing Tokenization Applications 

In addition to setting up this mechanism, the Project Ensemble Architecture Community plans to launch a sandbox environment by mid-2024. This sandbox, dubbed the Project Ensemble Sandbox, will allow for further exploration and testing of tokenization applications, paving the way for potential real-world uses.

The formation of this community was strategically decided upon by HKMA based on the expertise, experience, and innovative capacities of its members. These qualities are essential for driving forward the development of a robust tokenization market in Hong Kong. The HKMA has also indicated that it will continue to work closely with industry stakeholders and may adjust the size and composition of the community as needed to adapt to evolving market demands.

Shaping the Future of Global Finance

This development follows HKMA’s earlier announcement of Project Ensemble, which marked the beginning of its focused efforts to support tokenization in Hong Kong. As interest in blockchain-based real-world asset (RWA) tokenization grows, industry experts anticipate that this technology could significantly transform various sectors and potentially expand into a $16 trillion market by 2030.

The post Hong Kong Pushes Forward with Tokenization Initiative appeared first on Coinfomania.

Dubai, UAE, March 14th, 2024, Chainwire

MANTRA has announced a major step towards mainstreaming Real World Asset (RWA) tokenization with its application for its first essential financial licenses. Its expected receipt of licensing in the UAE will allow MANTRA to target a global customer base, and empower businesses to capitalize on RWA asset tokenization.

MANTRA’s layer1 blockchain, known as MANTRA Chain, is designed to facilitate the issuance and trading of tokenized RWAs. In 2024, MANTRA is on a mission to onboard financial organizations and other commercial enterprises that seek to tap into the many benefits tokenized RWAs have to offer. 

To support the establishment of fully compliant RWA infrastructure, MANTRA’s dedicated teams located in Hong Kong and UAE have developed deep understanding of the evolving regulatory frameworks in key regions. By obtaining its first financial licenses in the UAE, MANTRA aims to position itself at the forefront of the rapidly evolving RWA sector throughout the Middle East and Asia.  MANTRA’s 2024 goal is to tokenize a diverse portfolio of assets including real estate, private market funds, private equity, art, and treasuries. 

MANTRA CEO John Patrick Mullin said: “Our vision is to spearhead the tokenization of Real World Assets and set a global standard for security, compliance, and innovation. This will create a sustainable ecosystem for developers and institutions. By securing our foothold in strategic, crypto-friendly markets like Asia and the UAE, we’re not just navigating the future but actively building it. MANTRA will bridge the longstanding divide between traditional financial systems and the blockchain space, democratizing access to wealth and opportunity on a scale never seen before.” 

Through establishing a solid legal foundation, MANTRA is primely positioned to help enterprises master the complexities of RWA tokenization. In the process, MANTRA aims to set new benchmarks for security and regulatory compliance.  In particular, security is a fundamental component of MANTRA’s RWA tokenization strategy, where its comprehensive licensing framework and security-first layer1 blockchain will stand it in good stead. This ensures adherence to stringent security protocols, which are crucial for platform adoption and the safeguarding of tokenized assets.

In recent weeks, MANTRA has made headway in decentralizing its network, securing worldwide validator support. The imminent launch of the final MANTRA testnet, known as Hongbai, symbolizes a synergistic blend of Hong Kong and Dubai influences. Its deployment will be a pivotal step towards MANTRA Chain becoming the first RWA layer 1 on Cosmos.

####

About MANTRA 

MANTRA aims to be the first RWA L1 blockchain capable of adherence and enforcement of real world regulatory requirements. By accelerating the adoption of tokenized RWAs, MANTRA has the potential to unlock the $16 trillion RWA economy with a regulatory-ready blockchain. Through MANTRA Chain’s compliant framework, TradFi companies can easily switch to and leverage asset tokenization and blockchain solutions, boosting global RWA growth.

MANTRA addresses key industry challenges, including liquidity fragmentation and cross-chain interoperability, setting the foundation for a secure, scalable infrastructure. MANTRA will also offer a DEX that provides users with a diversified product suite built around easy access to tokenized real world assets. 

Website | X | LinkedIn | Telegram | Medium | Instagram

Contact

Marketing LeadChristoph Lidmanpress@mantrachain.io

The post MANTRA Aims to Bring RWA Tokenization to The Middle East and Asia appeared first on CoinChapter.

Montis Group, based in London and Luxembourg, focused on launching the missing piece of digitally-native, post-trade financial markets infrastructure that is needed for digital securities to reach their full potential, today announced that Martin Watkins, CEO, will present live at the Blockchain & Digital Asset Virtual Investor Conference hosted by Alpha Transform Holdings and VirtualInvestorConferences.com, on April 25th, 2024

 

DATE: April 25th

TIME: 13h00 ET, 18h00 BST, 19h00 CET

LINK: https://bit.ly/3JaIRj3

Available for 1×1 meetings: April 26th 

 

This will be a live, interactive online event where investors are invited to ask the company

questions in real-time. If attendees are not able to join the event live on the day of the

conference, an archived webcast will also be made available after the event.

 

It is recommended that online investors pre-register and run the online system check to expedite participation and receive event updates.  

 

Learn more about the event at www.virtualinvestorconferences.com.

 

Montis highlights:

Applying for full CSD (Central Securities Depositary) regulated license in Luxembourg.

Focused on tokenised bonds, funds and structured products. 

Blockchain-based MVP CSD systems fully developed and production-ready.

Authorisation and Luxembourg Go-Live targeted for Summer 2024.

Settling digital securities alongside conventional securities across the 27 EU member states.

Preparing to apply in the UK and Asia Pacific as well to fuel global expansion.

Blockchain protocol agnostic solution provides interoperability across chains.

Member of the European Central Bank market group for Euro CBDCs

Seeing high demand from asset managers for tokenisation of bonds and funds, as well as from custodian banks – where post-trade cost-savings of c. 45% can be realised, based on the banks own numbers and costs.

 

Montis is raising $3m in its Seed Equity round and has commitments of $1.9m in place already.

 

###

About Montis Group

Montis is a 3-year-old startup at the Seed Round funding stage.

Based in London and in Luxembourg, we are a team of infrastructure practitioners and technology innovators who believe that all assets are moving on-chain, hence the regulated infrastructure needs to be ready for that moment.

Our management team come from the incumbents, so we have seen the issues and are addressing market demand for tokenised securities.

We exist because the markets are waiting (frustrated) and the incumbents are very slow.

Montis is ahead of the curve and with all the largest financial institutions agreeing tokenisation is the future, we are perfectly placed. 

 

About Virtual Investor Conferences®

Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors.

 

Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access.  Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.

 

 

CONTACTS:

 

Montis Group Limited

Martin Watkins

Chief Executive

+44 7739 478 622

m.watkins@montis.digital

 

Virtual Investor Conferences 

John M. Viglotti

SVP Corporate Services, Investor Access

OTC Markets Group 

(212) 220-2221

johnv@otcmarkets.com

 

The post Montis to present at the Blockchain & Digital Asset Virtual Investor Conference April 25th appeared first on Visionary Financial.

Unveiling a New Chapter in Energy and Technology In the dynamic world where technology intersects with finance, a groundbreaking concept is taking shape: energy tokenization. While it might sound intricate, its essence lies in reshaping our engagement with, investment in, and allocation of energy resources. This discussion explores the profound influence of tokenizing energy, focusing […]

The post Harnessing the Blockchain: Transforming Energy Distribution with Tokenization appeared first on TechBullion.

The development of blockchain-powered secondary markets can help improve the adoption of tokenization in traditional markets, a new report by Moody's says.

Although there is a lack of these secondary markets, analysts are noting growth.

Blockchain-powered secondary markets can help expand the reach of tokenized assets, analysts at Moody's Investors Service said in a report published Thursday.

Tokenization is the representation of real-world assets on a blockchain, and financial institutions worldwide are exploring how it can improve the efficiency, cost and reach of financial markets. For example, tokenization allows large assets such as private equity or real estate to be broken down and represented by multiple tokens, opening the market to a wider range of investors, a previous report from the ratings company said.

While financial institutions and governments have started dabbling in the issuance of tokenized assets – such as Hong Kong's $100 million green bond last year – there is a lack of secondary markets where they can be traded after the primary offering, the Moody's analysts note.

This limits the adoption of tokenization, the new report said, adding that there is a noticeable growth in blockchain-powered secondary markets.

Blockchain and tokenization bring "significant innovations to secondary market structures," and developing secondary markets for blockchain-based securities could improve liquidity management, enhance market data accessibility and facilitate instantaneous settlements, the report said.

"These blockchain-powered secondary markets address several perceived drawbacks of traditional secondary markets, including limited accessibility of certain asset classes, inefficiencies in settlement processes, and high operational costs," the report said.

Though these blockchain markets promise innovation, the report warns that there are also technological and regulatory hurdles.

"The technology underpinning these markets, primarily smart contracts, is susceptible to risks such as bugs, rug pulls, price manipulations, and oracle failures. These vulnerabilities not only pose financial risks to participants but also hinder the broader acceptance and integration of [decentralized finance]," the report said.

The Digital Assets Association (DAA), a non-profit focused on advancing institutional adoption of tokenized assets, announced its official launch this week.

Headquartered in Singapore but with a global outlook, the DAA brings together stakeholders from across financial services, fintech, law and technology.

TLDR

Digital Assets Association (DAA) launches to bridge traditional finance and RWA tokenization

Founding committee has senior leaders from DigiFT, Onfet, Tranchess, Banking Circle, Standard Chartered, Bright Point

Aims to facilitate collaboration, develop standards, advocate responsible adoption, empower workforce

Citi report predicts tokenization of assets could reach $4 trillion by 2030

DAA will host events, engage policymakers, offer training to progress the ecosystem

With founding committee members from innovative startups to banking giants, the DAA reflects the widespread belief that asset tokenization and decentralized finance will transform traditional finance. It provides a platform to collaborate on critical issues like regulations, standards, and workforce development to responsibly unlock this potential.

The DAA germinated from several like-minded organizations already active in the ecosystem. DigiFT, a regulated on-chain exchange for real-world assets (RWA), is pioneering new tokenized markets with approval from Singapore’s central bank. Blockchain platform Onfet enhances operational efficiency through tokenization. And Tranchess develops tokenized funds tracking everything from crypto to real estate.

These founders recognize tokenization could be the ‘killer app’ for blockchain in finance. One often-cited Citi forecast predicts over $3.8 trillion of assets tokenized by 2030. While adoption is still early, the DAA sees an opportunity to proactively address the barriers holding back institutions from capturing this value – whether legal uncertainties or technology challenges.

The DAA’s four key initiatives center around education, standardization, policy advocacy and talent development. Through conferences and working groups, members can learn tokenization best practices from experts across various domains. By facilitating discussion on issues like interoperability, data transparency, and risk management, the DAA aims to develop common standards all ecosystem players can rally around.

Meanwhile, the DAA’s regional chapters will engage with lawmakers and regulators to promote balanced policymaking. And identifying future talent needs, the DAA looks to nurture a workforce fluent in both blockchain and institutional finance through dedicated training programs.

With this multi-pronged effort, the DAA seeks to foster an environment where tokenization can continue evolving responsibly. And the collective expertise of its members should add credibility in pushing the conversation forward with regulators still hesitant about embracing decentralized technologies.

On the startup side, the DAA’s base of institutions and investors can also accelerate the growth of high-potential tokenization ventures. So whether from a startup or enterprise perspective, the DAA looks to advance the entire digital asset ecosystem.

As DigiFT CEO Henry Zhang summarized, “The launch of DAA is meant to be that platform that empowers the financial services ecosystem to unlock the full potential of tokenization.”

The post Bridging Traditional Finance and Crypto: Inside the Digital Assets Association appeared first on Blockonomi.

According to CoinDesk, the last six months in crypto markets have been dominated by two main narratives: the prospect of Bitcoin ETFs, which were approved by the SEC in January, and so-called real world assets (RWAs). Both traditional and decentralized finance experts have hailed these related innovations. BlackRock CEO Larry Fink told CNBC, “ETFs are step one in the technological revolution in the financial markets. Step two is going to be the tokenization of every financial asset.”

The final objective for all financial assets should be bringing the entire value chain, not just the end product, on-chain. This includes equities, fixed income, cash equivalents, alternative investments, and the many structured products that build on top of them. Unparalleled efficiency, transparency, and programmability can be enabled from origination and issuance to settlement and custody.

Traditional financial firms like WisdomTree are already pushing past simple token wrappers and embracing broader blockchain capabilities for capabilities like settlement, record-keeping, and exchange infrastructure. J.P. Morgan Onyx is also exploring on-chain settlement and rebalance execution for alternative assets and broader portfolio management. Blockchain-native organizations like Goldfinch and Maple are bringing credit markets on-chain with lending facilities and secured collateral. Other asset classes like real estate (RealT), private equity (Tokeny), and carbon credits (Toucan) are coming on-chain too.

In a future where all assets are built, managed, and distributed on-chain, investors, asset managers, and even regulators will benefit from the transparency, efficiency, and disintermediation that results. Lower costs, global distribution, and more efficient markets await on the other side.

The post HSBC Financial Management expects new assets to continue to be strong appeared first on Coinpedia Fintech News

HSBC Hong Kong’s Sami Abouzahr said its net new assets increased significantly last year. In 2023, HSBC’s stock trading, insurance, and fund sales performed very well. Customers are interested in diversifying risks instead of setting up high-interest time deposits. Investors are now aware that holding too much cash will underperform the market. Hong Kong stocks have been neutral but depict a lot of financial strength. In 2024, HSBC will study the introduction of tokenization technology to facilitate investment in physical and virtual assets.