Hong Kong's banks encouraged to explore tokenised deposits and assets

Authorities are expected to work together to regularise the issuance of tokenised bonds.

The Hong Kong Monetary Authority (HKMA) will take forward Project Ensemble and encourage commercial banks in the city to introduce tokenised deposits and to promote live transitions of tokenised assets.

“We are implementing a regime for stablecoin issuers and formulating legislative proposals regarding licensing regimes for digital asset dealing and custodian service providers,” Hong Kong’s Chief Executive John Lee said in his 2025 Policy Address on 17 September.

The HKMA is expected to assist the government in regularising the issuance of tokenised bonds; and encourage banks to strengthen risk management through their supervisory sandbox.

Separately, the Securities & Futures Commission (SFC) is studying the possibility of offering a wider range of digital asset products and services to professional investors with the prerequisite of sufficient investor protection in place, Lee said.

“The SFC will also introduce automated reporting and data surveillance tools to build a line of defence against risks associated with digital assets in Hong Kong,” he added.

Hong Kong will also deepen pilot cooperation with the Greater Bay Area (GBA) carbon market, according to Lee.

“Working with relevant Mainland regulatory departments and authorities, the government will study issues surrounding the country’s participation in the international carbon market, including the formulation of voluntary carbon credit standards and methods, as well as the registration, trading and settlement of carbon emission reduction,” Lee was quoted saying in his address by the government news site news.gov.hk.