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HKMA and FSTB to conclude the first stage of fixed income DLT review
01 July 2026 Hong Kong
Image: estherpoon/stock.adobe.com
The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) have concluded the first stage in a review of the further adoption of distributed ledger technology (DLT) in Hong Kong’s fixed income market.
The review suggests that the region’s legal and regulatory environment is currently sufficiently flexible for the issuance of tokenised bonds.
In the next phase, the FSTB and the HKMA will explore flexibilities and legislative changes necessary to build an ecosystem they consider “future-ready” in its ability to facilitate the more extensive use of DLT in both the fixed income market and digital assets more broadly.
Legal enhancements for addressing issues in adopting DLT in the fixed income market’s current processes will be examined, including allowing the electronic execution of issuance documents for tokenised bonds and considering possession and transfer concepts for tokenised fixed income instruments.
Christopher Hui, Secretary for Financial Services and the Treasury, says: “A clear and robust regulatory framework provides a solid foundation for the sustainable development of the digital asset sector.
“By providing clarifications on DLT record-keeping requirements today and exploring further legislative enhancements in the next phase, we are keeping Hong Kong at the forefront of Web3 development and financial innovation”
Eddie Yue, CEO of the HKMA, adds: “Hong Kong is a leader in advancing technology adoption in the bond market.
“This review, conducted jointly by the FSTB and the HKMA, aims to build on this momentum to establish a robust and forward-looking fixed income ecosystem in Hong Kong.”
The review suggests that the region’s legal and regulatory environment is currently sufficiently flexible for the issuance of tokenised bonds.
In the next phase, the FSTB and the HKMA will explore flexibilities and legislative changes necessary to build an ecosystem they consider “future-ready” in its ability to facilitate the more extensive use of DLT in both the fixed income market and digital assets more broadly.
Legal enhancements for addressing issues in adopting DLT in the fixed income market’s current processes will be examined, including allowing the electronic execution of issuance documents for tokenised bonds and considering possession and transfer concepts for tokenised fixed income instruments.
Christopher Hui, Secretary for Financial Services and the Treasury, says: “A clear and robust regulatory framework provides a solid foundation for the sustainable development of the digital asset sector.
“By providing clarifications on DLT record-keeping requirements today and exploring further legislative enhancements in the next phase, we are keeping Hong Kong at the forefront of Web3 development and financial innovation”
Eddie Yue, CEO of the HKMA, adds: “Hong Kong is a leader in advancing technology adoption in the bond market.
“This review, conducted jointly by the FSTB and the HKMA, aims to build on this momentum to establish a robust and forward-looking fixed income ecosystem in Hong Kong.”
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