2024-04-04 01:31:50
Hong Kong is not willing to lag behind in opening up real world asset (RWA) investment. Yang Zaiyong, vice chairman of the Hong Kong Chinese Financial Association, wrote today that the Hong Kong Securities and Futures Commission has recently made it clear that security token offerings (STO) and RWA investment may have a negative impact on retail investment. Opening up to investors is expected to attract more capital to flow into Hong Kong.
(Previous summary: Hong Kong’s first Bitcoin spot ETF will be listed as soon as May! Yibo Financial VSFG: In close discussions with the China Securities Regulatory Commission)
(Background supplement: Hong Kong’s passage of the “Article 23 Legislation” has far-reaching consequences. Is it difficult to maintain the aura of Asia’s financial center?)
The Real World Assets (RWA) track is becoming one of the hot spots in the cryptocurrency market. RWA aims to use the blockchain to digitize physical assets with tangible value. BlackRock launched the first tokenized investment fund BUIDL last month. With the support of , more than US$1 billion of U.S. Treasury bonds have been tokenized, setting a milestone record.
Hong Kong RWA Progress
Hong Kong, which has recently actively embraced the Web3 field, is not far behind in RWA. In January this year, Chinese securities firm GF Securities (Hong Kong) successfullyissuedThe first short-term commercial paper (Commercial Paper) tokenized securities applicable to Hong Kong law, with technical support provided by ABT Tech, a locally incubated blockchain technology company in Hong Kong.
Yang Zaiyong, vice chairman of the Hong Kong Chinese Financial Association, told the Economic Times todayWrite an articlepointed out that this is the first tokenized securities issuance in Hong Kong following the Hong Kong Securities Regulatory Commission issued important regulatory guidelines in November last year, marking a new milestone in the development of digital finance in Hong Kong.
Yang Zaiyong said that the tokenized securities rely on the Ethereum blockchain and have many advantages such as transaction security, transparency, and efficiency. Investors can query and supervise token-related information at any time, and are not subject to any institutional restrictions. With the openness of Ethereum, investors can flexibly develop auxiliary tools and achieve multi-point integrated management:
The issuance of tokenized securities breaks the dependence on traditional intermediaries, greatly lowers the threshold for participation, expands the investor base, and opens up the possibility of designing personalized products.
RWA expected to be open to retail investors
In addition, Yang Zaiyong mentioned that the Hong Kong Securities Regulatory Commission recently made it clear that security token offerings (STO) and RWA investments may be open to retail investors, which will undoubtedly attract more funds to enter the Hong Kong market. The development of RWA and STO is expected to provide Hong Kong’s economy has been injected with new growth momentum.
In Yang Zaiyong’s view, thanks to the advanced and complete regulatory framework, Hong Kong has created a good development soil for the Web3 industry. Promoting RWA innovation requires the full cooperation of regulatory agencies, industries and investors. Hong Kong regulatory authorities are open to support RWA innovation. attitude, clearly stating that RWA investment is expected to be open to retail investors, which will undoubtedly attract the influx of more capital.
However, if Hong Kong wants to strive to become the source of global RWA innovation, Yang Zaiyong believes that it must further improve the top-level design, break through innovation bottlenecks, optimize infrastructure, and cultivate market ecology. Although the next generation of new finance poses many challenges in terms of technology and compliance, , but the core issue to be solved is still whether it can bring more liquidity to the traditional financial market in a safe and compliant environment.
Previously, the Hong Kong Monetary Authority issued the “Sales and distribution of tokenized products》Circular, requiring institutions to conduct due diligence, fully disclose relevant information, and formulate policies, procedures, systems and monitoring measures to identify and mitigate risks before launching tokenized products. At the same time, institutions that provide tokenized product custody services Institutions must comply with relevant digital asset custody standards.
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