Digital tokens to transform Hong Kong's financial industry are chosen by the city
Using digital tokens to streamline conventional assets has the full support of the Hong Kong financial industry. Project Ensemble Sandbox was inaugurated in a hall on the 56th floor of the International Finance Centre by the Hong Kong Monetary Authority (HKMA), the de facto central bank of Hong Kong.
"Tokenization has the potential to make financial transactions more efficient, more transparent and less costly," says Eddie Yue, chief executive of the HKMA, who also coined the motto "Tokenising Together" for the organization.
To create a vibrant and creative digital asset ecosystem in Hong Kong, the launch "marks a significant milestone in our journey," according to Yue.
In order to gauge the efficacy of the technology, financial institutions will investigate possible transactions using tokenized assets. Tokenized bond and fund transactions are a key feature of the pilot's several topics.
Improved efficiency and reduced transaction costs are anticipated outcomes of the invention. Notably, Standard Chartered, the Bank of China, and HSBC are all involved in the new financial orientation of Hong Kong. Hong Kong dollar notes are issued by all three of these institutions. Ant Digital, a unit of Alibaba Group Holding, and Microsoft are also taking part.
The asset liquidity assistance may be handled by HashKey Group. In the event that the tokenization initiative is successful, the HKMA will be ready to launch a CBDC.
"Tokenizing something is to provide a way of measuring the value in this world," Yat Siu, co-founder and chairman of Animoca Brands, said.
According to Siu, China's desire to wean itself off the dollar is reflected in Hong Kong's shift toward tokenization. China thinks the dollar is a weapon used against nations that don't follow the Western system, he says.
He asserts that the dollar's supremacy in digital banking is being challenged by Chinese authorities who are using Hong Kong as a strategic front.
